M&A: Circle to Acquire Equity Crowdfunding Firm SeedInvest

Voyager
Voyager

Goldman Sachs-backed Circle announced this week that it will be acquiring SeedInvest, an equity crowdfunding industry leader and an SEC and FINRA registered broker-dealer, for an undisclosed amount.

According to the announcement, Circle acquired the NYC-based startup to integrate its equity financing platform that has helped hundreds of startups raise capital from more than 200,000 investors to build out a similar marketplace driven by a token economy.

This new system will allow businesses and individuals to directly raise capital from investors “using open crypto rails and infrastructure.” Ultimately, what Circle intends to build is a platform for Security Token financing, similar to CoinList or Overstock’s tZero.

“This acquisition 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‚Äôs digital asset exchange,” said Circle in the announcement.

It was a busy week for Circle, as it also announced that¬†Circle Invest, the company’s retail cryptocurrency trading platform, has launched new investment products called “Collections” that allow users to invest in mini cryptocurrency indices that are sorted by asset function.

While there is no indication as to when the deal will be closed, Circle notes that SeedInvest will add 30 team members to the company’s New York location.

More: Circle announces acquisition of broker-dealer and leading equity crowdfunding platform SeedInvest

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

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