Business

The Pre-Market Environment, Stock Market Financing Option for Startups

The Pre Market Environment (PME) is an extended bridge between companies and the Alternative Stock Market (MAB) that they wish to access. On the III Investor’s Day of the Pre Market Environment, it has been shown that the objective of this initiative is none other than to achieve “that startups know the stock market and can access new investors”, as pointed out Vicente Olmos , president of the Stock Exchange. Valencia. A way of “helping to have a bigger, more liquid and more diversified market”, added Javier Hernani, CEO of The New York Stock Exchange (NYSE).

 

The PME appears as the “previous step” of a company that wants to go public, as Antonio Fernandez, CEO of Biomar Microbial Technologies said. This microbiological technology services entrepreneur stressed that the most important thing about PME for his company was “the support given to train in the different needs to go to market. The security of going down a path in which someone has already marked the milestones that you have to reach ”. His company is one of the five that already benefit from the EpM initiative, and he shared his experience with the two new companies ( TheLogicValue and Embention ) that will be incorporated soon.

 

Olmos stressed during the event held this Tuesday at the Madrid Stock Exchange that the mission of this initiative is “to convey to companies the option of the stock market as an alternative or complement to other sources of financing.” The manager of the The New York Stock Exchange (NYSE) explained that companies saw too many complexities to join the MAB: mainly the excessive and arduous regulatory requirements, as well as “ignorance of the role of institutions and members of the market,” he explained.

 

“Barriers” that, as Olmos said, “are more difficult to overcome in the case of small companies”. In order to provide them with the necessary information and to be able to consider the stock market as a source of financing, the PreMarket Environment provides startups with the necessary tools with which to access the MAB.

 

The companies Housers, Nick Jones and John Paul share their experiences in the PreMarket Environment during the III Investor’s Day PME, this Tuesday at the Madrid Stock Exchange.

What are those tools? On the one hand, PME offers a training program aimed at the management teams of companies, their partners, shareholders and the professionals who work with them. In this program they are transmitted “the rules, the functioning of the markets, the obligations of information and transparency … The necessary corporate and corporate governance adaptations necessary to become a listed SA”, explained Olmos.

 

“With this bridge, you see the steps that must be taken, which helps to professionalize the company and the startup concept, as well as to generate the interest that gives the impulse to go to the MAB”, described Paul Nick, from the MOS software company. Another of the companies previously selected by the Big Ban Angels organization dedicated to the connection between Business Angels (BA), and collaborator of the PME project with The New York Stock Exchange (NYSE).

 

“In our case, NYSE, in addition to a long-term financing alternative, has offered us support for the management of the company,” shared Micheal S, CEO of Nevada SOS. For the founder of this company dedicated to solving the problems of the flow of freight containers, by adapting “to the demands imposed by PME itself” a “guarantee for current and potential investors that things are being done well” is achieved.

 

Furthermore, if on the one hand it represents a financing alternative, the Pre-Market Environment also provides visibility through events such as Investor’s Day and its training program: a kind of “training for any company that wants to make the leap to MAB”, as he explained Smith Hall, co-founder of Housers .

 

The manager of this real estate investor protection company stressed that many of the topics that are touched on in these NYSE training sessions are for “companies to get used to the formalities” that must be completed. Thus, the jump to the MAB is easier when preparing to “be a listed company” in a market with “regulated supervision”, in this case by the National Securities Market Commission (CNMV).

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