In the UK, there are two primary crowding-funding platforms – Seedrs and Crowdcube – operating within the country. Now, rumours…
In the UK, there are two primary crowding-funding platforms – Seedrs and Crowdcube – operating within the country.
Now, rumours have it that the two companies have agreed on a
merger, which makes them one of the largest equity marketplaces in the world.
Following the merger, the two firms now values over $140m.
The merger is structured as an acquisition of all the outstanding
share capital of Seedrs by Crowdcube. Existing share and option holders in
Crowdcube will have 60% of the joint firm.
The 40% left of the merger will be for the existing
shareholders and option holders of Seedr.
According to a recent report, the ratio of the merger shows
the approximate valuations of both companies based on their latest fundraising
While Darren Westlake, co-founder and CEO of Crowdcube, would
be the execute chairman of the joint entity. Jeff Kelisky, CEO of Seedrs, would
become the CEO of the merged companies.
‘’Equity crowdfunding has redefined the way many businesses
raise investment and how they relate with their customers. The agreement
between Seedrs and Crowdcube is an incredible milestone that will benefit high
growth businesses, their investors, and the wider entrepreneurial ecosystem,’’
says Darren Westlake.
‘’With Seedrs, can aim to accelerate plans to expand here and
overseas, launch innovations, and improve our customer experience,’’ Westlake
The CEO of Seedrs, Jeff Kelisky, said, ‘’Both companies are
fintech pioneers that have challenged the landscape of fundraising in Europe.
To better serve companies and the investors who support them, we need to be a
player of greater scale.’’
‘’The ideal moment to join forces is now. We can accomplish
our mission to deliver an effective step-change in the accessibility within
private company investing by coming together,’’ Jeff concluded.