“Warren Buffet began investing in the stock market in local companies in Omaha (Nebraska, USA) in the 1950s. Here in Spain, in 2020, it remains incomprehensible for investors and small and medium-sized companies to participate in alternative markets” . This has been one of the conclusions of the “webcast” organized by Fellow Funders together with the General Council of Economists, Cepyme and BME Growth, which has questioned the “lagging role” of Spanish companies in the small stock markets.
In this way, the experts who participated in this round table have tried to resolve the taboo for small and medium-sized companies on this alternative method of financing and the “urgent” need to adapt to it as a generator of growth for the Spanish economy. “There are companies that in certain stages the banks do not grant financing, and they can overcome this point by entering this type of markets,” he said. Mariano Colmenar, managing partner and head of the capital markets division of Fellow Funders.
Further, Jesus Dominguez Founder and manager of Valentum has ensured that it is the perfect time to go out to these markets “because now it has a lot of liquidity.” In this regard, the CEO of FacePhi, Javier Mira has highlighted the need for the Spanish business fabric to seek to increase its capital in alternative exchanges such as BME Growth in Spain, in which 120 companies are listed, although most of the Socimis are very focused on the real estate sector.
On the investor side, “the lack of culture” has also been highlighted among Spanish investors, unlike in other European countries such as United Kingdom, where «for people with a certain income level it is not efficient not to invest in these markets. The incentives are of such a caliber that even having losses is beneficial, “explained Colmenar.
In the european queue
A few weeks ago, Cepyme and the General Council of Economists Together with Fellow Funders they presented the “Guide on listed markets for SMEs”. This document reflects how the Spanish business ecosystem is reluctant to change its ideology and as a consequence continues in the queue of European countries in terms of financing alternatives by ensuring that the number of Spanish companies listed on the alternative market -115 companies – It is 70% lower than in the rest of European countries, where the average is 384.
A figure that reflects the aging of a national peasant where half of the entities are SMEs, in addition to showing the reluctance of Spanish firms to expand. In this sense, the “Guide on Listed Markets for SMEs”, prepared by the General Council of Economists (CGE) and Cepyme, with the collaboration of Fellowfunders and BME Growth, invites companies to opt for this type of financing. According to the document “alternative markets are unregulated markets, valid for SMEs in expansion, since the administrative requirements and the costs of incorporation and maintenance are substantially lower than those of the large traditional markets and this makes them a good alternative to the bank financing to finance the expansion plans of small and medium-sized companies in our country ».
Furthermore, the guide points to BME Growth and the junior tranches of Euronext as the main alternative markets where Spanish companies could have a place. Although it also emphasizes the costs of these stock market incorporations. Thus, a company with a valuation of 15 million would have to pay between 70,000 and 180,000 euros to enter these exchanges, and up to 62,000 per year to pay for its annual maintenance.