The Competition and Markets Authority (CMA) therefore intends to cancel its investigation into the potential competition concerns that could be raised by the merger.
Crowdcube and Seedrs are the two largest equity crowdfunding platforms in the UK. These types of platforms connect small and medium-sized enterprises (SMEs) looking to raise equity investment with investors willing to provide funding in return for a stake in the business. The proposed deal would have resulted in the combined company having at least a 90% share of this important market.
The CMA had been carrying out an in-depth Phase 2 investigation and on the 24th March 2021 announced its provisional findings that the merger could result in UK SMEs and investors losing out as a result of higher fees and less innovation. The CMA's initial view was that blocking the merger may have been the only way of addressing the competition concerns.
