Simon Moon, Fund Manager at Unicorn Asset Management, shares his thoughts on the 30th anniversary of the Alternative Investment Market (AIM), highlighting its contribution to UK innovation, productivity and regional growth – and why it remains a vital platform for scaling businesses.
“As AIM turns 30, it is worth remembering what the market was created to do, and what it still does better than any other venue in Europe: fund ambitious, scaling companies that drive innovation, exports and regional growth.
“Since 1995, AIM companies have raised over £135 billion in growth capital and now support more than 778,000 jobs across the UK. In 2023 alone, they contributed £68 billion in Gross Value Added to the UK economy, which is more than the entire agriculture, advertising, or broadcasting sectors. These companies also paid £5.4 billion in corporation tax and returned £1.2 billion in dividends to shareholders, with an average yield of 3.9 percent.
“Our own experience reflects AIM’s potential. Abcam used the market to scale into a global life sciences leader before listing in the United States and was ultimately acquired by Danaher for 5.7 billion dollars, a significant premium that underlined its strategic value. Craneware, a healthcare software provider serving the United States hospital market, remains listed on AIM and has delivered consistent growth for more than 15 years, with strong cash generation and operational resilience. Alpha Group International is another example. It is a company we supported at its initial public offering that developed on AIM before progressing to the Main Market. For high-quality businesses, that is a natural and positive evolution.
“AIM businesses consistently outperform private peers. The average AIM employee contributes £87,000 to UK economic output, which is over 50 percent higher than the national average. AIM companies also generate four times more export revenue, proportionally, than their private counterparts. This is exactly the kind of productivity and international competitiveness the UK needs more of.
“Importantly, more than 75 percent of the capital raised on AIM since 2007 has come through follow-on funding rather than initial listings, showing that investors continue to support these businesses well beyond the IPO. That is patient capital at work.
“While market conditions are challenging, AIM’s core role remains vital. If the UK is serious about backing innovation, improving productivity, and supporting growth across the regions, AIM should be seen as a cornerstone of that ambition.”