Small companies looking for investment but put
off by the costs associated with raising finance
are being targeted by a new online stockmarket.
Run by Cavendish Management Resources (CMR),
FundEx allows entrepreneurs to pitch their ideas
and companies to investors via the internet.
Originally launched a year ago as the CMR
Business Exchange, FundEx offers the new facility
of presenting to potential investors by means of
There is no cost to participating companies
apart from a success-only fee of between 0.25% and
Mike Downey, CMR managing director, told
Startups.co.uk that although firms of any size are
welcome to use the service, it will be most
attractive to smaller companies wanting to avoid
the high costs normally associated with raising
According to CMR, raising £2m on the small
business stockmarket Ofex costs around £200,000
including £70,000 upfront. In contrast, to raise
£2m on FundEX costs £20,000 with no upfront
Downey added that around 500 businesses have
used the service in its previous form with the
highest investment so far being £2.5m. Most firms,
he said, are seeking funding of between £100,000
"It is a logical step to use the internet in
this way to greatly increase the chances for good
business and entrepreneurial opportunities to get
the support they need," he said.
"Also, the availability of video makes the
communication of ideas and plans so much easier
and more effective."