Crowdfunding platforms' merger set to create "one of the world's largest private equity marketplaces"

Two UK crowdfunding platforms have announced this morning that they have agreed a merger.

Seedrs, based in London, has agreed to the merger with Crowdcube in a move that will create “one of the world’s largest private equity marketplaces”.

The merger will be structured as an acquisition of Seedrs by Crowdcube, with Crowdcube shareholders owning 60 per cent of the combined company, and Seedrs shareholders owning 40 per cent.

The transaction, which is expected to be completed in late 2020 or early 2021, is subject to approval by shareholders, as well as the Financial Conduct Authority and the UK Competition and Markets Authority, which could block the merger on grounds of a monopoly.

Darren Westlake, CEO and co-founder of Crowdcube, commented: “Equity crowdfunding has redefined how many ambitious businesses raise investment and engage with their customers.

“Today’s agreement is an incredibly exciting milestone that will benefit high growth businesses, their investors who believe in their vision and the wider entrepreneurial ecosystem that supports them.

“Together with Seedrs, we can accelerate plans to further expand in the UK and overseas, launch innovative new products and improve our customers’ experience.”

Jeff Kelisky, CEO of Seedrs, said: “We are both fintech pioneers that have challenged the landscape of capital raising in Europe, building marketplaces for private equity investment.

“We believe that you need to be a player of greater scale to serve companies and the investors who support them.

“Now is the right time to bring our strengths together, in order to meet our common mission to deliver a step change in the accessibility and efficiency of private company investing.

“This will not only create value for ambitious companies and their investors, but also for the economies and communities that they serve.

“As we look to the future, we’ll be well positioned to build on our combined strengths and create a powerful global private equity marketplace that will transform the ecosystem of equity finance globally.”