Crowdcube and Seedrs Merges to Create a Much-Effective Private Equity Marketplace

Crowdcube and Seedrs Merges to Create a Much-Effective Private Equity Marketplace

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 rounds.

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 added.

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.