BME's junior alternatives BME Scaleup and BME Growth stand out at South Summit

Stock markets look to SMEs

In the current difficult fundraising conditions, a growing number of European SMEs (small and medium-sized enterprises) are looking for alternative financing options.  Exchanges, through their SME-specific growth segments, are increasingly filling this financing gap, as BME explains.

BME currently has two such segments. Of them, the youngest one is the recently launched BME Scaleup, aimed at companies with an average annual turnover of at least EUR 1 million, more than 10 employees and proven growth for three consecutive years, while BME Growth, established in 2010, is a better known segment is aimed at larger companies. The latter has helped raise over €7 billion for more than 180 companies since its creation. In addition, a platform to accelerate the IPO process for SMEs, the EpM (Entorno Pre Mercado), also helps companies familiarise themselves with market requirements and participants.

This topic was discussed on the Growth stage on the panel: Ready, steady... IPO! In this round table, the director of both markets, Jesus González Nieto-Márquez, pointed out the possibilities offered by the BME Growth and BME Scaleup markets for a total or partial divestment by Venture Capital or Private Equity investors.

In fact, several venture capital investors participate in the share capital of 36 BME Growth companies. Specifically, these investors have been able to divest in 12 companies listed on these markets, taking advantage of a liquidity window that would be more difficult if they were not listed companies.

In the long term, listing on a growth segment can be a stepping stone for an eventual IPO on BME Exchange.  In fact, BME guides companies along the entire financing ladder, adding value at each step: from the EpM, through BME Scaleup and BME Growth to the main market.

In addition to its participation in the panel, BME's sales team has reached out to innovative start-ups that are very agile and growing very fast year on year. These are companies in less conventional sectors such as the manufacture of green engines for the aerospace sector, platforms that connect companies with high value-added professionals or spin-offs from universities.

All these companies have already raised rounds of funding and BME offers its services (EpM and Junior Markets) to raise more finance from new investors with the aim of scaling their business.