Insider Media Limited

A new funding channel has been launched for small and medium sized businesses looking to raise up to €5m (£4.5m). Midlands companies will be provided with advice about the Sharemark stock exchange by Birmingham-based Investbx.

Sharemark is marketing itself as a low-cost, order driven stock market for smaller companies.

The new venture will provide small and medium sized businesses looking to raise between €500,000 (£451,700) and €5m (£4.5m) access to a fundraising channel through which they will be able to gain capital from the retail investor community.

Investing will take place through The Share Centre, which owns and operates Sharemark, and a number of other third party brokers.

Local stock market Investbx will provide corporate advice to the Midlands' businesses, while Lesmoir-Gordon, Boyle & Co will provide corporate finance expertise. Legal advice will be provided by Squire Sanders Hammonds.

Sue Summers, board director at Investbx, said: "We are delighted to be part of this significant initiative from Sharemark as it provides the opportunity for Investbx to continue its remit of connecting viable SMEs with equity finance. The Share Centre's retail investor base provides access to substantial fundraising and we look forward to assisting the scheme with our expertise."

Businesses which decide to take part in the exchange will also receive access to up to £10m bank debt through Clydesdale Bank under the same due diligence process.

Sophie Douglas, manager of Sharemark, said: "We're very pleased to be in a position where the services we provide can be used to create a cost effective solution for small business fundraising.

"The government has been calling for SMEs to be the driving force behind an economic recovery and we believe this fundraising initiative will aid and equip many of them with the necessary funds to kick-start their future growth, and therefore help create new employment opportunities."