Circle announced the recent acquisition of SeedInvest, an equity crowdfunding company backed by New York-based equity firm Spencer Trask & Co.
According to a press release by Spencer Trask & Co. on October 11, stakeholders of SeedInvest received cash and convertible notes as a result of the transaction. Kevin Kimberlin, Chairman of Spencer Trask & Co., said that the crowdfunding company’s team has accomplished “a great job in expanding its business of helping new ventures grow.”
Raising The Bar
Consequently, Circle wrote in a parallel announcement that the acquisition will accelerate their strategy of delivering a token marketplace that empowers businesses and individuals to raise capital as well as to interact with investors through open crypto rails and infrastructure.
The Goldman Sachs-backed firm also revealed that SeedInvest will provide 30 team members to Circle’s New York office, so as to help it realize its vision.
Circle wrote in the blog announcement:
A critical element of realizing this vision is building new ways for businesses, and ultimately individuals, to use crypto assets to more efficiently raise capital, manage investors, and provide liquidity. Furthermore, Circle aims to continue to raise the bar for the crypto industry by embracing securities regulation as it applies to crypto and paving the way for security tokens.
Fourth Fastest-Growing Financial Services Firm
SeedInvest has aided hundreds of startups in raising capital online and has already connected with over 200,000 investors. In recognition of its professional contribution to the said industry, Inc. Magazine named it the fourth fastest-growing financial services company in the US.
Circle also said that SeedInvest’s product has “many of the end-to-end capabilities needed for executing regulated crowdfunding,” which includes startup due diligence, investor accreditation, payments and securities custody, and securities issuance.
“With Circle’s reach and relationships, SeedInvest can extend its capabilities to the development private security markets using tokens, virtual currencies, and blockchain technology, said Kimberlin. “As a new stakeholder in Circle, we look forward to benefiting from this powerful global alliance.”
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