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Cryptocurrency Firm Circle to Acquire SeedInvest

Goldman Sachs-backed cryptocurrency start-up Circle will acquire SeedInvest, an equity crowdfunding platform and broker-dealer, reports Antony Peyton of Fintech Futures (Finovate’s sister publication).

The firm said this acquisition will accelerate its plans for a token marketplace that enables businesses and individuals to raise capital and interact with investors using open crypto rails and infrastructure.

This acquisition and planned new offerings are subject to the U.S. Financial Industry Regulatory Authority (FINRA) approval. Financial details have not been disclosed.

Headquartered in New York City, SeedInvest has the “largest” equity crowdfunding platform in the country. To date, SeedInvest has helped hundreds of start-ups raise capital online and has a network of over 200,000 investors.

In addition, the company has generated triple-digit annual revenue growth while reaching profitability.

Circle said the SeedInvest product includes capabilities needed for executing regulated crowdfunding, such as start-up due diligence, securities issuance, investor accreditation, payments, and securities custody.

With the merger and approval from regulators, these capabilities will be expanded to support crypto-denominated investments including using fiat stablecoins such as USDC, as well as issuing and offering tokenised securities.

SeedInvest will add 30 team members to Circle’s New York location.

Founded in 2012 by Ryan Feit and James Han, SeedInvest demonstrated its equity-based, crowdfunding platform at FinovateSpring 2013. During the demo, Feit and Han highlighted a number of key features of the platform, including its due diligence dashboard, virtual boardroom, and its Simple Invest technology which provides an instant identity check, legal document execution, and streamlined funds transfer.

Prior to the company’s acquisition, SeedInvest had raised $11.4 million in capital. Avenue A Ventures, Great Oaks Venture Capital, Scout Ventures, and Jumpstart New Jersey Angel Network are among the firm’s previous investors.