Crowdcube and Seedrs have agreed terms for a merger

by Startacus Admin

Huge investment sector news with the announcement that Crowdcube and Seedrs have agreed to join forces to take on the UK’s £12bn equity funding market

 

Major news in the investment world today with the announcement that Crowdcube and Seedrs have agreed terms for a merger, in a move that will accelerate their plans to create the world’s largest private equity marketplace and further democratise investment. 

The combined company aims to deliver new innovations and products that will make it significantly easier, more affordable and valuable for ambitious businesses to raise growth finance, and investors will have an even greater selection of investment opportunities with richer investment tools.

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 within 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.”

The two leading investment platforms play a key role in Europe’s fast growing equity funding ecosystem, both through their success of primary raises through crowdfunding and the scaling of their secondary offerings and wider marketplace initiatives. 

Following completion of the merger, the companies will work together to define how the two businesses will combine their teams, customers, brands, services and technologies.

The transaction is subject to approval and is expected to be completed in late 2020 / early 2021. 

 

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Published on: 5th October 2020