This initiative is designed to unlock capital for startups and bridge the gap between private fundraising and public markets, catering to companies that prefer to stay private longer.

Pisces, the new Private Intermittent Securities and Capital Exchange System by the London Stock Exchange, aims to retain UK tech companies as IPO activity declines and firms increasingly choose to list abroad.

Critics have raised concerns that the relaxed regulations of Pisces could lead to inflated valuations and inadequate transparency, similar to issues seen with SPACs during their peak.

The Financial Conduct Authority has designed Pisces with less stringent disclosure requirements compared to traditional public listings, further raising transparency concerns.

Experts argue that deeper structural changes are necessary to support growth in the UK startup ecosystem, beyond merely introducing Pisces.

Despite skepticism, some view Pisces as a positive step, supported by additional government initiatives like the Public Offer Platform regime to facilitate public fundraising.

Pisces will limit access to institutional investors, high-net-worth individuals, sophisticated investors, and employees, excluding retail investors and requiring less comprehensive disclosure.

By allowing the trading of private company shares in a less regulated environment, Pisces seeks to appeal to businesses that are hesitant to go public.

Notable UK VC-backed companies, such as Revolut, Octopus, and Multiverse, are being approached to participate in this new market.

However, industry experts are divided on the effectiveness of Pisces; while some view it as a potential solution for unlocking capital, others question its ability to tackle the fundamental challenges facing the London Stock Exchange.

These challenges include high-profile firms like Wise moving their listings to New York and the reluctance of companies like Monzo and Revolut to float in London.

The urgency for such initiatives is underscored by a significant drop in public fundraising in London, which fell from $23.4 billion in 2021 to just $1 billion in 2022, ranking it 20th globally for IPOs.