- Jeff Kilesky will take the position of company CEO
- Darren Westlake to serve as Executive Chairman post-merger
- £2 billion has been invested in these companies, since 2011.
Crowdcube and Seedrs, two of the UK’s largest equity crowdfunding platforms, are set to merge. This move could make the market for funding new ventures and entrepreneurs less competitive, the fintech sector points out.
Both the companies in a joint statement on Monday announced that they had agreed on the terms of the merger. This will make the combined company worth £140m ($181.2m).
This juncture will cater to thousands of aspiring fast-growing businesses and millions of investors will be able to benefit from the combined expertise, services, and returns offered by their platform.
Why did Seedrs and Crowdcube create a merger?
Post-merger, Jeff Kelisky, Seedrs’ CEO, will be the CEO of the company. Meanwhile, Darren Westlake, Crowdcube’s CEO and co-founder, will be serving as Executive Chairman. Key leaders from both businesses will form the management team.
In terms of shareholder percentages, Crowdcube’s shareholders own 60% of the combined business, while Seedrs’ investors will receive 40%. The variance reflects the differing valuations of the companies.
Darren Westlake, CEO, and co-founder of Crowdcube elucidated: “Equity crowdfunding has redefined what percentage ambitious businesses raise investment and have interaction with their customers. Today’s agreement is an incredibly exciting milestone that will benefit high growth businesses, their investors who believe their vision, and therefore the wider entrepreneurial ecosystem that supports them.”
“Alongside Seedrs, we will accelerate plans to further expand within the UK and overseas, launch innovative new products, and improve our customers’ experience.”
Jeff Kelisky, CEO of Seedrs, commented: “We are both fintech pioneers that have challenged the landscape of capital raising in Europe, building marketplaces for personal equity investment. We believe that you simply got to be a player of a greater scale to serve companies and therefore the investors who support them.”
The merger is hoped to combine both the platforms’ strengths. This is in order to create a global private equity market that transforms the global equity scenario.
Following the completion of the merger, both companies will collectively define their business patterns. This will help the European businesses expand overseas. The aim of the same is to provide accessibility and efficiency within private company investing.