Several European crowdfunding platforms are joining forces to create what they call an alternative finance “super-platform” in response to the latest European crowdfunding regulations.
Kapitaal op Maat (KoM), Max Crowdfund (MCF), and Capital Circle (CaCi) have announced plans to merge, creating a larger platform with a presence in multiple countries and across various business sectors.
KoM, a crowdfunding platform for SMEs operational since 2014, acquired CaCi in 2023 and secured the European Crowdfunding Service Provider Regulation (ECSPR) license in November 2022, enabling expansion across all EU member states.
MCF, known for its real estate crowdfunding platform, has been operational since 2020.
The merger, expected to be finalized before the end of this year, will allow all three entities to operate under their individual brands but leverage KoM’s ECSPR license.
Both KoM and CaCi are registered with the Dutch Financial Authorities (AFM) and listed in the ECSPR register.
The ECSPR, initially set to be enforced on November 10, 2020, has been practically adopted as of November 10, 2023, following a grace period for transitioning from local regulatory frameworks to the unified European system.
With over 500 crowdfunding platforms currently in Europe, it is anticipated that fewer than 100 will receive the required ECSPR license. This regulatory shift is expected to trigger mergers or takeovers of smaller platforms by larger players.
This development led to the merger decision by the founders of MCF and KoM. The new conglomerate will boast over 20,000 registered users and have collectively funded over EUR 200 million across their platforms.
Their offerings will include SME loans and real estate-backed loans, initially in the Netherlands, the United Kingdom, Germany, and Belgium, with plans for further European expansion.
Finally, developed by Max Property Group (MPG), the parent company of MCF, will provide software solutions for the merged companies.
To fund this growth, the group will soon announce an equity round to raise capital for acquisitions and European expansion. The first acquisitions have already been agreed upon and will be disclosed upon finalization.