2020-10-15 09:10:51 UTC. “We’ve found a real risk that the merger could lead to less choice for SMEs and investors.”. Crowdcube and Seedrs employ 150 people between them. 8 October 2020 Portfolio company Seedrs announces plan to merge with Crowdcube Schroder UK Public Private Trust plc (LSE: SUPP) (the 'Company') is pleased to note that portfolio company Seedrs Ltd, ('Seedrs'), a leading online investment platform, has announced plans to merge with Crowdcube Ltd ('Crowdcube') to create one of the world's largest private equity marketplaces. Thanks for vote! Crowdcube/Seedrs deal fast-tracked to in-depth CMA investigation Crowdcube Limited (Crowdcube) and Seedrs Limited (Seedrs) are the 2 largest equity crowdfunding platforms in the UK. Current financial data for Seedrs is harder to come by but, using its historic results and Crowdcube as a read-across for growth, we estimate revenues at around £4.5m, implying a multiple of 12x. Seedrs And Crowdcube Merger Investigation Fast-Tracked By Regulator. Existing Crowdcube shareholders and option holders will own 60 pr cent of the combined company, and existing Seedrs shareholders and option holders will own 40 per cent of the combined company. The UK’s competition watchdog has kicked off an in-depth investigation into the merger of crowdfunding platforms Crowdcube and Seedrs after finding causes for concern. We’ve found a real risk that the merger could lead to less choice for SMEs and investors. You will only be able to invest via Crowdcube once you are registered as sufficiently sophisticated. Find reports and updates on current and historical CMA investigations Skip to main content. Losses have been reducing in both businesses and COVID has led Crowdcube (and presumably Seedrs) to … Both companies believe this move will accelerate their plans to create one of the world’s largest private equity marketplace and further democratise investment. It found that the merging companies would have a very high combined share of supply in the UK, and evidence from the companies’ internal documents and third parties suggest the companies are very close competitors. Crowdcube and Seedrs employ 150 people between them. Crowdfunding platforms Seedrs and Crowdcube have agreed to a merger which it is hoped will create "one of the world's largest private equity marketplaces". If this merger goes ahead, it would have just one. Unless the Competition & Markets Authority (CMA) stops the merger, this is going to happen. The platforms unveiled plans to merge in October, subject to regulatory approval. Their services are used by thousands of investors and businesses, particularly early stage start-up SME businesses that tend to have limited options for raising investment. The last 12 months have been remarkab... By Ekaterina Petrova, MD of the GenerationS Corporate Accelerator Tell us whether you accept cookies ... Crowdcube / Seedrs merger inquiry . Whilst Crowdcube is valued at £84 million, Seedrs is valued at £56 million. The companies recognised that the issues in this case are complex and that the test for reference at Phase 1 was likely to be met. On Monday 5th October 2020, Crowdcube and Seedrs announced that they had agreed terms for a merger, in a move that will accelerate their plans to create the world’s largest private equity marketplace and further democratise investment. Nominate a tech innovator for BusinessCloud’s sector rankings, Munich tech firm ‘doubling down on UK expansion’, Remote work start-up raises £11m in record time, Home-cooked food app is ‘scalable nationwide’, Aryza snaps up Scottish FinTech founded by schoolfriends, 2021: the year of environmental consciousness, Why the opportunity for innovation in tech has never been greater, How to maintain cybersecurity while working from home, Five gadgets to improve your wellbeing in 2021. Westlake: “It is not something that we have been able to plan that far ahead. The merger will now be referred for an in-depth ‘Phase 2’ investigation, which is overseen by an independent group of panel members. The two companies announced the deal earlier this month. For so many, 2020 has been ... By Aman Johal, lawyer and director of Your Lawyers   First rumoured back in July, the Crowdcube Seedrs merger will change the face of equity crowdfunding.. 1,500 companies have raised with Crowdcube and Seedrs with £2 billion invested into campaigns. Equity crowdfunding platforms connect small and … We’ve found a real risk that the merger could lead to less choice for SMEs and investors. The Competition and Markets Authority (CMA) is considering looking into the merger of crowdfunding platforms Crowdcube and Seedrs. The UK’s two biggest crowdfunding platforms have announced plans to merge. The Crowdcube-Seedrs merger has completed the phase 1 process of regulatory review and is now in the midst of a phase 2 determination. The merger is subject to approval by the CMA, FCA and their shareholders. They therefore requested use of the fast track procedure and, after due consideration, we believe this to be appropriate. Posted on November 13, 2020 by Jonathan Symcox. Could your local sports team in breach ... Demystifying Tech: What exactly is a 'smart city? It found that the merging companies would have a very high combined share of supply in the UK, and evidence from the companies’ internal documents and third parties suggest the companies are very close competitors. The CMA today announced that the criteria for a fast track reference are met as the transaction gives rise to a realistic prospect of a substantial lessening of competition in the supply of equity crowdfunding platforms to SMEs and investors, which would impact on the whole or substantially all of the deal. The two biggest equity crowdfunding platform in Europe are becoming one… The rumours had been on Twitter for quite a while, but I had refused to believe them! The CMA has agreed to ‘fast track’ the anticipated merger of Crowdcube and Seedrs to an in-depth Phase 2 investigation, after finding likely competition concerns. Las plataformas de inversión Crowdcube y Seedrs han acordado su fusión, mediante la adquisición de Crowdcube sobre Seedrs, con el objetivo de construir el primer mercado de capital You’ve accepted all cookies. The two companies announced the deal earlier this month.. Costituita da un team di professionisti IT con pluriennale esperienza nel settore di riferimento, WMG S.r.l. The two firms, who say £2bn has been raised across their combined platforms since 2011, are hinting at a bold new strategy to include marketplace access to larger private equity-level deals for investors. 100%. Westlake points out that Seedrs has a number of key positions, like chief investment officer, which Crowdcube doesn’t and vice versa. The Gallery, Birley Fields,Manchester, England M15 5QJ, The Competition and Markets Authority is to investigate the. The CMA today announced the criteria for a fast-track reference were met by Crowdcube and Seedrs as the transaction gave rise to “a realistic prospect of a substantial lessening of competition in the supply of equity crowdfunding platforms to SMEs and investors”. Crowdcube and Seedrs plan to merge to create one of the world’s largest private equity marketplaces, strengthening support for ambitious businesses and investors. The CMA has agreed to ‘fast track’ the anticipated merger of Crowdcube and Seedrs to an in-depth Phase 2 investigation, after finding likely competition concerns. 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. Added: 16 Oct 2020. Until recently, the UK had three notable equity crowdfunding platforms: Syndicate Room, Seedrs, and Crowdcube. 2020-11-12T15:33:00Z. Crowdcube and Seedrs, two of the largest crowdfunding businesses in the U.K. allowing ordinary people to invest in startups, have announced they will merge into a single service. Crowdcube is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. The combined company will be worth £140m ($181.2m). Crowdcube and Seedrs announced that they have agreed terms for a merger, in a move that will accelerate their plans to create the world’s largest private equity marketplace and further democratise investment. It will take only 2 minutes to fill in. To help us improve GOV.UK, we’d like to know more about your visit today. 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. Don’t worry we won’t send you spam or share your email address with anyone. One of the unexpected outcomes of the ... As we slam the door on 2020 (good riddance), we look to 2021 as the comeback year. VISIT SOURCE. Demystifying Tech: How does Open Banking work? The CMA revealed it has fast-tracked the deal to an in-depth ‘Phase 2’ investigation at the request of the two companies concerned. In most merger cases, a full ‘Phase 1’ investigation is needed to determine whether a deal can be cleared or whether further scrutiny is required. Crowdcube Limited (Crowdcube) and Seedrs Limited (Seedrs) are the 2 largest equity crowdfunding platforms in the UK. 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