Monday 5 October 2020 10:06 am

Crowdfunding platforms Seedrs and Crowdcube announce plans to merge

Crowdfunding platforms Seedrs and Crowdcube have announced plans to merge, creating one of the world’s biggest private equity marketplaces.

In a statement this morning the companies said the deal would create a “more robust” firm, allowing it to help fund more businesses. 

Read more: Seedrs says amount invested on its platform jumped 49 per cent in 2019

Crowdcube will acquire all of the outstanding share capital of Seedrs, with existing Crowdcube shareholders and option holders owning 60 per cent of the combined companies.

Seedrs shareholders and option holders will own 40 per cent of the merged firm following the transaction, which is expected to complete later this year or early in 2021.

“Going forward, the combined company will aim to deliver new innovations and products that will make it significantly easier, more affordable and valuable for ambitious businesses to raise growth finance, and for investors to have an even greater selection of investment opportunities with richer investment tools,” the companies said in a joint statement today.

Following the merger, Seedrs boss Jeff Kelisky will become chief executive, while Crowdcube’s co-founder Darren Westlake will serve as executive chairman of the combined business.

Read more: Mixed year for Crowdcube as Brexit uncertainty bites crowdfunding appetite

The firms have not yet announced how they plan to combine their teams, customers, brands, services or technology.

They will continue to operate as separate entities while they wait for approval from the court, Financial Conduct Authority, Competition and Markets Authority and both sets of shareholders.