Two of the crowdfunding platforms used by some of the UK’s most high profile online firms to raise cash, have merged in order to create a ‘more robust organisation’.
Seedrs and Crowdcube are to become one, including eventually their teams, customers, brands, services and technologies, most likely in a bid to reduce overheads.
Seedrs and Crowdcube between them raised nearly £20 million in funding for hybrid agencies and proptech firms in 2018, arguably the feverish zenith of investment into these sectors.
The most infamous of these was the former incarnation of eMoov, which raised £4.5 million from small investors via Crowdcube before going bust in late 2018 after racking up debts of over £15 million.
Other companies to raise money via both platforms include online lettings firms Howsy and SPCE, smartphone app Track and outsourced viewings service Viewber.
Several firms, including IdealFlatmate and HouseShop, attempted to raise cash from these platforms but had to withdraw after failing to reach their target totals.
“Since 2011, over £2 billion has been invested in campaigns on Seedrs and Crowdcube.,” says Seedrs co-founder Jeff Lynn (left).
“Together, we have helped more than 1,500 companies secure investment, including Brewdog, Revolut and Perkbox.
“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.”
The merger will now have to be approved by the Competition and Markets Authority (CMA), the Financial Conduct Authority (FCA) and shareholders of the two companies.