AIM at 30: Why this milestone deserves more than a passing glance

Investors could be forgiven for thinking there’s not much to celebrate as AIM marks its 30th anniversary this week. With recent headlines dominated by delistings, low valuations, a slowdown in IPOs and subdued sentiment, the narrative around London’s junior stock market has become sharply negative.

But should we let the challenges of the last three years dominate the narrative? A deeper review reveals a market that has supported a generation of UK success stories. Even now, AIM continues to nurture innovation and fund growth. The milestone is an opportune moment for the London Stock Exchange Group (LSEG) to engage with stakeholders and review the regulatory and cost environment to ensure it will remain Europe’s leading growth exchange for the next 30 years. AIM’s contribution to the UK economy, backing for entrepreneurs and wide investor base can ensure it remains relevant, attractive and worthy of our support.

Reasons to celebrate AIM at 30

AIM’s purpose still matters

When AIM launched in 1995, it filled a critical gap in the UK’s capital markets. Designed to support smaller, high-growth businesses that weren’t yet ready for the main market, AIM has always been about providing access to equity finance without the burdensome requirements of a full listing, and fuelling entrepreneurship. It’s also enabled investors to access investment opportunities that might not have been possible otherwise. That mission is as relevant today as it was three decades ago.

A proven economic contributor

Over the last three decades, AIM has helped more than 4,000 businesses raise over £135bn, helping to power business expansion, job creation, and innovation across the UK.

While the number of listed companies may have fallen, the market’s cumulative economic contribution remains significant. A recent study[1] commissioned by LSEG found that AIM contributed £68bn in gross value to the UK economy in 2023 alone.

In a recent panel discussion on the outlook for AIM, Marcus Stuttard, Head of AIM and UK primary markets at LSEG noted that AIM-listed companies are four times more likely to export than their private counterparts, highlighting how public capital can support outward-facing, globally ambitious businesses.

A home for progress and innovation

AIM has long been a launchpad for innovation. From biotech and defence to renewable energy and fintech, many of the UK’s most dynamic sectors are represented here. These businesses are typically agile, founder-led, and deeply embedded in their fields, often outperforming their larger peers.

Some of our own portfolio companies such as Craneware (healthcare tech), Cohort (defence), and Ideagen (regulatory compliance software) amongst others, have all built significant, global businesses from an AIM foundation.

Abcam, a pioneering biotech company we invested into in October 2005, grew to become the world’s largest supplier of antibodies and AIM’s largest company by 2018. Continued capital investment and strategic growth enabled it to diversify its product portfolio and expand into new markets. Following its AIM listing in November 2005, the company grew revenues 3,069% before its acquisition by Danaher Corporation in December 2023, bringing to an end a journey that yielded a total return over 4,000% on its AIM admission price.

Beyond the headlines

As an AIM-focused venture capital trust (VCT), we see a different reality from the outside perception. AIM has always been a broad church. With little analyst coverage and less scrutiny from institutional investors, mispricing is more common and, through careful stock selection, value can be found. Never more so than now.

We continue to uncover companies with strong fundamentals, real earnings progression, and compelling valuations. While media coverage tends to focus on underperformance or exits, it often overlooks the deeper narrative: AIM remains home to businesses with great potential and the energy and strategy to realise it.

Within our qualifying portfolio on AIM, the historical weighted three-year compound revenue growth rate is 17.8%, as our portfolio companies develop new products, expand into new markets, and lay the foundations for shareholder value. While the macro-economic backdrop has been challenging, for most of these companies, their success is driven more by strategic execution.

A valuation disconnect

Despite the maturity and quality of many AIM companies, market sentiment remains depressed. AIM is currently trading at a roughly 50% discount[2] to its 10-year average. That’s a substantial gap, not just versus its own history, but compared to UK and global peers.

This disconnect between performance and perception is precisely what creates opportunity. For investors willing to dig beneath the surface, there is value to be found.

A turning point for AIM?

There’s no doubt AIM has faced challenges. Capital has flowed abroad or into passive vehicles, Brexit and political instability have weighed on investor confidence, and economic conditions have been tough. While fiscal uncertainties do remain, we are seeing renewed interest in reforms, improved sentiment around the UK economy, and calls for greater support for small and mid-cap companies - especially from pension funds.

AIM’s future role remains vital. It’s one of the few places where smaller UK companies can raise growth capital in public markets. It supports jobs, innovation, and regional development. And for long-term investors, it still offers exposure to the UK’s most exciting growth stories.

From our perspective, as long-term investors committed to backing the best of UK innovation, the outlook is far brighter than the headlines suggest.

[1] Grant Thornton – Economic impact of AIM – Sep 2024

[2] As at 8 July 2025

Further reading

• AIM: Looking forward with optimism
• H1 FY25 review - watch our most recent review covering the six-month period ending 31 March
• Our VCT - find out more about the Hargreave Hale AIM VCT

The VCT invests in small, high risk companies, which are mostly listed on AIM. These companies may have volatile share prices and the investments may be difficult to realise. VCT investors are also exposed to changes in legislation that may adversely affect the company’s status as a VCT and its ability to meet the investment objectives and/or reduce the level of achievable return. There can be no guarantee that the VCT will meet its objectives or that suitable investment opportunities will be identified. A failure to maintain the qualifying status could result in the VCT losing the tax reliefs previously obtained, resulting in adverse tax consequences for investors.