We have some exciting news to share: Seedrs has agreed a merger with Crowdcube, another leading equity crowdfunding platform, in a move that will create one of the world’s largest private equity marketplaces and further democratise investment.
Seedrs and Crowdcube have each disrupted equity investment in the UK and played a key role in Europe’s fast growing equity funding ecosystem, both through our success of primary raises, the scaling of our secondary offerings and wider marketplace initiatives. Since 2011, over £2 billion has been invested in campaigns on Seedrs and Crowdcube. Together, we have helped more than 1,500 companies secure investment, including Brewdog, Revolut and Perkbox.
Now is the time to bring our strengths together and create a powerful global marketplace and transform equity finance globally.
By joining forces, we’ll be able to harness the best of both companies as we accelerate our shared mission to create the world’s largest private equity marketplace. Together, we will help fund thousands of ambitious, fast-growth businesses and deliver exceptional returns to the investors who support them.
In turn, the merger will allow us to create a more robust company, and we will be able to achieve our shared mission faster and more effectively when we are united.
How will the merger be structured?
The merger will be structured as an acquisition by Crowdcube Limited 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. This merger ratio reflects the approximate valuations of the two companies based on each of their most recent fundraising rounds.
The transaction is subject to approval by, among others, the UK Competition and Markets Authority (CMA), the Financial Conduct Authority (FCA) and shareholders of the two companies, as well as the sanction of the Court. The transaction is expected to be completed in late 2020 or early 2021.
What will the company look like after the merger?
Following completion of the merger, Jeff Kelisky will serve as CEO of the combined company, Darren Westlake, Crowdcube’s CEO and co-founder, will serve as Executive Chairman, and the management team will include key leaders from both businesses. The companies will then work together to define how the two businesses will combine their teams, customers, brands, services and technologies.
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.
What happens now?
Until the merger is completed, it is business as usual at both companies. The Seedrs team remains focused on what we have always done: helping ambitious entrepreneurs raise investment for their businesses while building communities in the process, and allowing investors to buy and sell shares in growing private companies.
We will share further information as soon as there are any further updates on the completion and integration process.
In the meantime, we thank you for your continued support for Seedrs, and we look forward to your joining us on this next stage of the Seedrs journey.
Jeff Kelisky Jeff Lynn
CEO Executive Chairman and Co-Founder