Crowdfunding platform Crowdcube has announced it has agreed to merge with funding platform Seedrs, in a move designed to create the world’s largest private equity marketplace.
Following completion of the merger, expected late this year or early next year, the companies will work together to define how the two businesses will combine their teams, customers, brands, services and technologies.
Since 2011, £2bn has been invested in campaigns on Crowdcube and Seedrs, helping to fund the likes of Revolut, Perkbox, what3words and Moneybox.
On completion, Jeff Kelisky, Seedrs’ CEO, will serve as CEO of the combined company, and Darren Westlake, our CEO and co-founder, will serve as Executive Chairman.
The new management team will include leaders from both businesses.
Westlake said of the plans: “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, added: “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.”
The merger will be structured as an acquisition by Crowdcube of all of the outstanding share capital of Seedrs Limited via scheme of arrangement.
Existing Crowdcube shareholders and option holders will own 60% of the combined company, and existing Seedrs shareholders and option holders will own 40% of the combined company.