The United Kingdom Crowdfunding Association (UKCFA), the leading industry voice in the UK for online capital formation, has commented on the merger announced today between Seedrs and Crowdcube. The two trailblazers in the Fintech sector of online capital formation have dominated the UK crowdfunding market for years now. A spokesperson from the UKCFA told Crowdfund Insider:
“The merger of Crowdcube and Seedrs creates a real powerhouse of start-up and growth finance for SMEs. A decade ago, Seedrs and Crowdcube pioneered this important sector, starting a revolution in finance which has been taken up around the world, and this merger gives the UK a powerful player to maintain that leadership position for the decades to come.”
CI asked for insight as to what this means for equity (investment) crowdfunding in the UK as it will pretty much be a single platform now for early stage securities offerings. The UKCFA said the merger was good news for the industry:
“The UKCFA sees this news as a positive for UK equity crowdfunding as it will create a stronger singular presence to penetrate and develop the European market more fully. In the UK, combining the best of the two leading players into a single entity could improve the ECF offer to both founders and investors, whilst leaving room for competitors to innovate and develop their own distinct services.”
Further clarification regarding the merged entity’s strategy for global expansion should be distilled within the next couple of months as the deal gains regulatory approval.