Crowdcube & Seedrs Merger

wow. makes sense, but wasn’t expecting this - https://www.crowdcube.com/explore/blog/crowdcube/crowdcube-news?mc_cid=e39f56428f&mc_eid=92bdb2b708

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Yeah I just saw this. Interesting …

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Just saw that as well ! Does that mean Freetrade secondary market ? :wink:

Edit : And does that also mean access to Revolut secondary market for Crowdcube investors ?!

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Hopefully they don’t let seedrs stagnate as I’ve felt crowdcube has. I’m not exactly optimistic on this one

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Also a post from Seedrs

I do hope this is going to be a positive thing for companies raising and for crowdfunding investors.

Yes, Freetrade secondary market would be great :slight_smile:

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Wonder what this means in terms of fees? both have different fee structure at the moment. I think with Seedrs the fee comes from a percentage of profits, with Crowdcube it’s upfront.

Will they choose one fee structure or will there be a choice?

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I’ve no idea on the rules around competition but, much as I’d like to see this merger, surely there’s an issue here around reducing competition. As a company seeking funding there’ll really only be one place to go now. I hope they do it though, they’ll be formidable.

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Wow unexpected as investor in both the companies.

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There are lots of places to get funding, all the angel groups etc etc

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Less platforms can only be negative for the crowdfunders and the industry as a whole.

There won’t be much competition on the fees they can charge, there will be no fight for attracting the best investment selections, overall no dynamism within the industry… that’s a shame as there seem to be enough money and activity to sustain multiple players.

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Agreed - there’s lots of sites out there, Seedrs and Crowdcube are simply the widest known so tend to attract the bigger names. The one reduction point I can see, is that they both allow smaller investors while some of the competition you have to have sizable amounts to invest, but other competitors will come online to take up that slack.

You can only buy shares in Revolut on the secondary market if you are an existing investor in the company. It’s not open to everyone and Revolut don’t sound like they will allow it any time soon.

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So this is pretty big news: https://www.altfi.com/article/7114_crowdcube-and-seedrs-to-merge

Culturally, they feel pretty different as well as all the differences between how the two platforms operate. Will be interesting to see which of the two approaches they choose across different parts of the operations.

It also makes me think that this is pretty anti-competitive. The move basically eliminates any choice for both investors and companies.

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I was actually more thinking about selling :wink:

It reduces competition, but there are plenty of other Crowdfunding companies out there, albeit not as well known as Seedrs & Crowdcube, and some don’t allow the low funding amounts that they offer.

I’m hoping they adopt the best from both platforms, being able to trade my crowdcube companies in the secondary market, and getting a better UI across both would be great.

Yes then.

Not sure the CMA will go for this. It’s like Pepsi and Coke merging.

It really is nothing like that.

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From an investor perspective I dont see any competition issues at all. The fee structures will need agreeing, but otherwise my CC companies gain access to secondary market (hopefully) otherwise I lose nothing.

From the perspective of companies looking to crowdshare - there’s one less option on the table, but there are others so no competition issues IMO

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