Leading crowdfunding sites have claimed that they face collapse if the £140m merger between Seedrs and Crowdcube is scuppered. The two firms, which between them have hosted crowdfunding campaigns attracting £2bn since 2011, announced plans to merge in October, saying the deal would create “one of the world’s largest private equity marketplaces”. The tie-up prompted scrutiny from the Competition and Markets Authority. The watchdog said the deal meant there was "a realistic prospect of a substantial lessening of competition in the supply of equity crowdfunding platforms to SMEs and investors”. In November, the CMA said it was fast-tracking an in-depth probe as there were clear competition concerns. But in submission documents to the CMA, Crowdcube warned against a total block on the merger, saying both companies were "unprofitable and cannot both achieve profit ability independently of one another in the absence of the proposed merger".
Read more: The Sunday Telegraph
Visit our website here for more news and product information, or click the button below to submit a short enquiry form for your finance needs.
