Something which might be of interest to you Brumagem folk. Lifted from elsewhere.
FT, 30 March 2007
BIRMINGHAM STOCK EXCHANGE REBORN
The long-defunct Birmingham Stock Exchange is set to be reborn this summer as an online trading facility in the shares of West Midlands companies that are too small to list in London.
The new exchange, Investbx, "will be more like Ebay than the London Stock Exchange", according to its sponsor Advantage West Midlands, a regional development agency.
The aim of Investbx is to provide share capital in slugs of between 500,000 and 5m, a funding category in which the Treasury has identified an "equity gap".
Below 500,000, entrepreneurs typically raise money from friends, family or "business angels", a sparse population of wealthy individuals who provide advice as well as cash. Funding above 500,000 has become hard to come by in recent years as institutions have progressively raised their minimum investment thresholds.
Businesses likely to seek a listing would include small software or engineering companies seeking capital to develop promising new products. But the biggest challenge for Investbx will be attracting investors rather than cash-hungry companies.
The exchange, which will be run on contract by The Share Centre, a registered stockbroker, needs to persuade a class of local magnates who invested in small, locally quoted companies years ago to do so again.
Advantage West Midlands, which will provide 3m towards the running costs of the new exchange, described the venture as "high risk", adding that "if the risks were lower the private sector would be doing this".
Investbx will "appeal to people with local knowledge, who, for example, pass businesses they would like to invest in on the way to work", said Mick Laverty, deputy chief executive of AWM.
He said modern internet facilities such as video clips meant Investbx "could showcase entrepreneurs and their products in a way a traditional regional stock exchange could never have done".
The new exchange is the brainchild of an AWM finance group led by the technology entrepreneur and government adviser Norman Price. It will be run by an independent board whose members include David Thompson, chairman of Marston's, the pubs and brewing company, and Paul Bassi, a Midlands property multi-millionaire.
AWM hopes Investbx will generate revenue through listing fees paid by companies quoted on its website, and that it will eventually be able to sell the venture.
One possible function of mini-exchanges sponsored by development agencies such as Investbx would be to foster trading in the shares of small businesses benefiting from public sector equity investment.
The government has created a raft of investment funds that use taxpayers' money to buy stakes in worthy businesses, usually in partnership with private sector investors. For example, venture capital funds targeted at regional investment backed by the government are worth over 250m.
Critics doubt there is really a market failure in the provision of small-scale equity investment in the UK. Some managers of so-called "public equity" funds say privately that instead there is a shortage of investment-ready small businesses with strong growth prospects.
See also this item dated last week, in which ShareMark appears to involve itself in Brum-X (scroll to foot):
http://www.onrec.com/newsstories/16990.asp
jzl (ex brummie)