AIM at 30: A Legacy Under Pressure
On 19 June, London’s Alternative Investment Market (AIM) marks its 30th anniversary—a milestone that invites both celebration and reflection.
Since its inception in 1995, AIM has welcomed over 4,000 companies, raising more than £136 billion and positioning itself as a launchpad for UK innovation and entrepreneurship on the global stage.
Economic Impact and Contributions
In 2023 alone, AIM-listed businesses contributed £68 billion in gross value added (GVA) to the UK economy and supported more than 770,000 jobs, according to a report by Grant Thornton. These figures underscore AIM’s enduring impact on the national economy and its role in helping small and medium-sized enterprises (SMEs).
Mounting Challenges Behind the Milestones
Despite these successes, there’s a growing undercurrent of concern. What was once hailed as a flexible and accessible route to public funding has become, for many, a regulatory burden with increasingly steep financial obligations.
Rising Costs and Declining Participation
Annual costs for maintaining an AIM listing now regularly exceed £500,000, with some companies reporting costs nearing £1 million. Combined with reduced trading liquidity and cautious investor sentiment, many companies struggle to access the growth capital that AIM was designed to provide.
Company Exodus Reaches New Heights
In 2024, 89 companies exited AIM, a trend that has persisted into 2025. The number of listed firms now stands at just 679—the lowest in AIM’s history. In comparison, AIM hosted nearly 1,700 companies in 2001 and 821 as recently as 2021.
Matched-Bargain Alternatives Gain Popularity
As a result, some firms are shifting to matched-bargain platforms like JP Jenkins and AssetMatch, which offer a less burdensome alternative to public markets. This reflects a broader sentiment that AIM, in its current form, may be out of step with the needs of today’s agile, capital-hungry growth businesses.
Balancing Celebration With Caution
As the London Stock Exchange hosts its commemorative events this week—bringing together key stakeholders who shaped AIM’s past—it’s also an opportunity to confront hard questions about the market’s future.
AIM’s legacy is undeniable. But its relevance in a rapidly evolving funding landscape may depend on how willing regulators and policymakers are to adapt its model to better meet the needs of today’s growth companies.
