The Royal Securities Exchange of Bhutan started the Alternative Investment Market or AIM in 2018 to help small businesses and start-ups with financing needs. However, no companies have received funding from the AIM as there were not many applicants due to lack of awareness of the investment market and the opportunities it offers. For those who tried, investors were not interested.
The Royal Securities Exchange of Bhutan established the Alternative Investment Market platform to assist potential businesses with financial and structural growth in the absence of intermediaries such as angel investors and venture capital firms.
Angel investors are individuals who provide financial support to startup companies in exchange for a share of ownership in the company, while venture capital firms invest money in startups and small businesses with the potential for rapid growth and success.
The platform was designed to connect startup companies with potential investors. However, the AIM platform has yet to gain widespread awareness and adoption among the business community.
“I have never heard of the AIM. I did hear about crowdfunding. But I hardly have any idea about both,” said Kinley Om, the owner of Bhutan Hydroponics.
Entrepreneurs are hesitant to approach the AIM platform for investment opportunities due to a lack of awareness about the platform.
“I think we have to go through the idea and what are the specifications they are actually looking for. Since we do not know any criteria or specifications, we are not aware of how this AIM will be. So, I am not sure whether we will be able to take it or not,” said Jeewan Baral, the owner of The Mugwort Solution.
According to the CEO of the Royal Securities Exchange of Bhutan, Dorji Phuntsho, a few businesses that sought alternative investment did not appeal to investors, who are reluctant to take on risk.
“The reason why we came up with the Alternative Investment Market is because for any company to go public it requires certain criteria. First of all, they need a track record and proof of profitability. That has in fact discouraged a lot of companies to come forward to go public,” said Dorji Phuntsho.
The CEO stated that the AIM platform enables companies to scale up and potentially raise more funds through an initial public offering or IPO. IPO is the process by which a private company becomes a publicly traded company by offering its shares to the public for the first time.
Sonam Yuden
Edited by Sherub Dorji
