Seedrs, the equity crowdfunding platform, will be acquired by an American peer-to-peer for around $100 million.
Republic, a US start-up investment service, has netted the British company just a few months after the competition watchdog discovered plans to merge with Crowdcube.
In March, the couple abandoned their proposed relationship after the Markets and Competition Authority said “preventing a merger may be the only way to address competition concerns.” painting”.
The platforms, which allow casual investors to buy shares in fledgling companies, have warned that without an agreement “one or both companies” [could] exit the market or need to reorient their business strategy”.
The CMA concluded that “a deal between the two sides could leave UK SMEs at a loss due to higher fees and less innovation”.
Now, Seedrs will be swallowed up by the five-year-old Republic, which will use the London-based company as a bridgehead into Europe.
Seedrs was founded in 2012 by Jeff Lynn, 43, and Carlos Silva, 42, who met during an MBA course at the Oxford Saïd Business School. Silva’s landlord put in £30,000 and introduced them to other angel investors. It was the world’s first managed equity crowdfunding business and to date it has helped startups raise £1.5 billion from investors. Andy Murray, tennis player, has invested in several companies through Seedrs, but it is best known for helping digital bank Revolut raise capital.
Lynn will stay on as executive chairman and oversee Republic’s expansion into Europe. The British company has applied for a license in Ireland so it can provide services across the EU. Brussels has harmonized the rules for crowdfunding platforms, allowing them to do business on a single market.
About 5,000 small investors are said to own shares. Investors in funds formerly managed by Neil Woodford own about 30%. These shares are being acquired by US investment firm Davidson Kempner, which will become an investor in the merged group.
Republic said it was ready to “commit substantial capital to drive growth in the UK and Europe”. It aims to develop “the strengths of both companies. . . to create a clear industry leader”.
