Circle-Owned Crowdfunding Platform SeedInvest Gains FINRA Approval As Alternative Trading System

News | April 29, 2019 By:

Equity crowdfunding platform SeedInvest has received an approval from the Financial Industry Regulatory Authority (FINRA) to operate an Alternative Trading System (ATS) to facilitate secondary trading of startup investments.

Founded in 2012, SeedInvest provides individual investors with access to pre-vetted startup investment opportunities. The platform allows users to discover, share, fund, and support small businesses and startups in the United States. Earlier this year, crypto finance firm Circle acquired SeedInvest with a shared vision of creating a more open, global, connected, and inclusive financial system.

SeedInvest claims that it is the first equity crowdfunding platform in the US to receive FINRA approval permitting secondary trading of securities through an ATS, in addition to capital raises in the primary markets. The FINRA approval will reportedly allow SeedInvest to enable investors to trade their startup shares on the secondary market post initial investment once it officially opens up its platform for trading.

“Liquidity remains a key missing piece towards democratizing the private capital markets,” said Ryan Feit, Co-Founder of SeedInvest. “Creating a truly vibrant secondary market for private company shares has the potential to make startup investing a significantly more attractive asset class.”

Jeremy Allaire, Circle Co-Founder and CEO, said that they’re focused on empowering individuals and business to create and share value in ways that are more open, inclusive, efficient and global.

“ATS approval for SeedInvest sets us on a path to develop secondary trading marketplaces and to facilitate liquidity for private securities, which together hold the promise of significantly democratizing private capital markets,” Allaire said.