Circle Acquires Crowdfunding Platform SeedInvest
Circle Internet Financial Ltd., a cryptocurrency finance firm, has taken over SeedInvest, a crowd funding platform and broker-dealer, according to media report published October 5. Neither party has disclosed the exact terms of the transaction.
Established in 2012, SeedInvest, a New York-based firm offers a start-up investing platform. As of date, more than 220 firms have successfully raised capital from more than 240,000 investors. The average investment raised by a company using the platform is $500,000, while the maximum investment received by a single company so far was $2,000,000.
Circle will be able to extend SeedInvest’s facilities to back crypto sector, after the buyout receives approval from the Financial Industry Regulatory Authority (FINRA). Circle even plans to support stablecoins and tokenized securities offering.
Furthermore, companies will supposedly be able to get the necessary funding through a regulated platform, obtain access to small scale investor portfolios through Circle Invest, and offer investors with secondary market liquidity on Circle’s cryptocurrency exchange. Circle CEO Jeremy Allaire informed the following while speaking to Bloomberg:
“This was a company who had been at the forefront of collaborating with government to figure out how to make it possible to innovate in the way people raise capital. Crypto securities are going to become a major new category of securities that ultimately every business is going to adopt, just like every business has a website.”
Notably, this week, Circle launched “Collections,” a unique feature that allows customers to invest in one or more group of crypto assets, where each group represents a particular theme. The feature is provided in Circle’s crypto investment app Circle Invest. The themes offered are “Platforms, Payments, and Privacy.” After choosing a theme, investment can be made in the entire category with a single click.
Last month, Circle introduced a USD-backed digital token named the “USD Coin (USDC).” According to Circle, more than 20 companies are on their way to announce support for USDC, while other firms might allow trading through the open ERC-20 standard.
Circle, which was established in 2013 by investment banking giant Goldman Sachs, offers four key products including Circle Pay, which is primarily a fiat money transmission service with a social messaging feature, and Circle Trade, which is a fast-growing liquidity provider of cryptos and supposedly facilitates over $2 billion worth transactions each month.