Crypto Startup Circle Closes Acquisition Of Crowdfunder SeedInvest

News | March 5, 2019 By:

Crypto finance firm Circle has closed the acquisition of equity crowdfunding site SeedInvest after receiving regulatory approval from the Financial Industry Regulatory Authority (FINRA).

Founded in 2012, SeedInvest is an equity crowdfunding platform that 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.

The acquisition was first announced by Circle in October 2018, noting that it will enable companies to efficiently raise capital through a regulated platform, tap into diversified retail investor portfolios through Circle Invest and provide investors with secondary market liquidity on Circle’s digital asset exchange.

In a blog post published on March 4, Circle said that the acquisition is a further step toward realizing their vision of a more open, global, connected, and inclusive financial system.

“As a crowdfunding pioneer in the United States, SeedInvest helped to shape the JOBS Act,” Circle said. “Today they are at the forefront of enabling startups to raise capital directly from investors over the Internet — creating new capital formation options for startups and growth companies, and giving average retail investors the opportunity to invest directly into innovative private companies.”

According to the announcement, SeedInvest will continue to operate normally, but with additional support behind the company.

“We will also explore future opportunities enabled by tokenization,” Circle said. “As with other areas of our business, we will work closely with leading regulators in the US such as the SEC and FINRA as we evaluate the evolution of private capital market products and services using crypto assets and blockchain technology.”