Two of the UK’s largest equity crowdfunding platforms, Crowdcube and Seedrs, are to merge, in a move that could make the market for funding new ventures and entrepreneurs less competitive, according to observers in the fintech sector.

The UK-based companies, both of which are loss-making, said in a statement on 5 October that the pair are still working on discussions about the combination of their technological platforms, as well as on plans for their teams and brands.