Button merchant turned crowdfunding platform Teathers Financial (TEA:AIM) is benefiting from a delayed but juicy read-across from a deal executed by finance house Numis (NUM) yesterday.

Stockbroker and corporate adviser Numis paid £4.3 million to acquire an 8.49% stake in the UK’s largest crowdfunding platform Crowdcube.

Shares in Teathers jumped 14.3% to 3p in early trading, making it one of the day’s biggest gainers.

TEATHERS FINANCIAL - Comparison Line Chart (Rebased to first)

Teathers disposed of its button and trimming activities in 2014 and became an AIM-listed investing company in December with a strategy to develop a crowdfunding equity app which was launched at the UK Investor Show on 18 April.

Qualified users will be able to participate in initial public offerings (IPOs) at the same price and terms as institutional investors.

Crowdcube offers a similar feature, something Numis chief executive Oliver Hemsley says has ‘the opportunity to democratise IPOs in the future’, according to an interview with the Financial Times.

But investors should exercise caution comparing market-leading Crowdcube and Teathers, an early stage company just starting out in an increasingly competitive the crowdfunding arena.

Issue Date: 31 Jul 2015