SeedInvest

SeedInvest
IndustryCrowdfunding
Founded2012
FoundersRyan Feit, James Han
Headquarters
New York City
,
United States
Area served
United States
ServicesEntrepreneurship, startups, investment
OwnersCircle Internet Financial Ltd.[1]
Number of employees
30+
Websiteseedinvest.com

SeedInvest is an equity crowdfunding platform that connects startups with investors online. The company was founded in 2012 and launched in 2013.[2] SeedInvest has focused on building liquidity in the platform by attracting high-net-worth individuals, family offices and venture capital firms.[3] SeedInvest screens and vets deals before allowing them to take advantage of the JOBS Act exemption permitting General Solicitation.[4] In September 2014 the company launched a partnership with Angel Investing website Gust.[5]

In October 2018, SeedInvest was acquired by peer-to-peer payment company Circle Internet Financial Ltd.[1][6]

In 2023, StartEngine, a U.S.-based equity crowdfunding platform, officially acquired assets of SeedInvest, from Pluto Holdings, LLC, an affiliate of Circle Internet Financial. [7] The acquisition price of the SeedInvest was not disclosed. [8]

Funding

SeedInvest raised a significant portion of its own $4.15 million Series A funding round online in April 2014.[9] It was led by Scout Ventures, a venture capital firm, and a mix of other venture capital and angel investors.[10] An earlier round of seed capital was raised in 2013.[11] In 2020, it has raised a total of $5.1 million.[12] The platform sends start-ups for intensive verification; investors can participate for as little as $500 with a 2% fee.[13] Fees, capped at $300, are refundable if the listing fails to meet its fundraising goal.[14]

JOBS Act

SeedInvest founders Ryan Feit and James Han were involved in consultation with the U.S. Securities and Exchange Commission (SEC) and in the United States Congress for the passing of the JOBS Act.[15] The JOBS Act included provisions that permit online equity crowdfunding by platforms such as SeedInvest. SeedInvest hosted the first Testing The Waters campaign under the new Regulation A rules for equity crowdfunding on June 19, 2015.[16]

References

  1. ^ a b Katz, Lily (5 October 2018). "Circle to Buy SeedInvest to Help Startups Raise Cash With Crypto". Bloomberg. Retrieved 18 April 2021.
  2. ^ Clifford, Catherine (June 11, 2014). "Crowdfunding Platform Raises $4 Million to Fund Its Own Growth". Entrepreneur.
  3. ^ Kopytoff, Verne (February 5, 2013). "Crowdfunding: Waiting for the Investor Pool to Deepen". Businessweek. Archived from the original on February 7, 2013.
  4. ^ Harrison, J.D. (October 29, 2013). "New crowdfunding rules: The good and bad news for entrepreneurs and investors". Washington Post.
  5. ^ Alden, William (September 18, 2014). "Crowdfunding Site SeedInvest Strikes Deal to Widen Its Reach". New York Times.
  6. ^ Baydakova, Anna (2019-03-04). "Circle Completes SeedInvest Purchase, Paving the Way for Tokenized Equities". www.coindesk.com. Retrieved 2024-07-19.
  7. ^ "StartEngine Finalizes SeedInvest Acquisition". Yahoo Finance. 2023-05-09. Retrieved 2024-07-19.
  8. ^ Reynolds, Sam (2022-10-27). "Crowdfunding Platform StartEngine to Acquire Rival SeedInvest From Circle". www.coindesk.com. Retrieved 2024-07-19.
  9. ^ Kolodny, Lora (October 2, 2014). "Startups Advertising to Raise Funding More Than VC Firms Are, Study Says". "Wall Street Journal".
  10. ^ Lunden, Ingrid (April 14, 2014). "SeedInvest raises Series A". TechCrunch.
  11. ^ Kolodny, Lora (June 28, 2013). "SeedInvest raises $1M". Wall Street Journal.
  12. ^ "Top 10 Equity Crowdfunding Sites – 2020". crowdwise.org. 13 September 2020. Retrieved 2022-12-06.
  13. ^ "Leading Equity Crowdfunding Platforms for 2022". crowdfunding.guide. March 2022. Retrieved 2022-12-06.
  14. ^ "What fees do investing users pay to SeedInvest?". intercom.help. Retrieved 2022-12-06.
  15. ^ Summers, Nick (February 12, 2013). "SeedInvest launches its online crowdfunding platform". The Next Web.
  16. ^ "SeedInvest Lists WayBetter as Reg A+ Issue to "Test the Water"". 19 June 2015.