Seizing the Opportunity: StartEngine Is Acquiring SeedInvest
No doubt, by now you’ve heard the exciting news: we’ve agreed to acquire SeedInvest from Circle. Of course, we’re thrilled to have this great company join our platform. But what does it mean for StartEngine’s vision and strategy long term?
Well, to start, the acquisition validates something I’ve said for a long time: always be raising. By staying well-capitalized, we’re secure enough to pursue market opportunities at a time when many in finance are likely struggling to remain afloat. And by bringing a fellow equity crowdfunding giant under our umbrella, we’re poised to become one of the largest platforms in the space.
SeedInvest is a genuine pioneer in equity crowdfunding. SeedInvest’s founder and CEO Ryan Feit was one of the signatories on the petition that kicked off online raises. They were also the first platform to apply the JOBS Act to Regulation D offerings – way ahead of the advent of Regulation A+ or even StartEngine itself.
Nowadays, they have an impressive roster of more than 250 successful funding rounds under their belt, many of which have topped 8 figures. Case in point: NowRX has fundraised over $40 million on SeedInvest to date. The platform’s investor base is among the best in the industry too. They have an investor community of over 700,000 users, who’ve collectively raised over $470 million in SeedInvest’s 10-year run.
Now, we’re preparing to inherit SeedInvest’s trailblazing legacy as we consolidate their community with our own.
What the acquisition means for StartEngine:
Since our own launch in 2015, StartEngine has focused on growing our business with an eye toward remaining well-capitalized. And we’ve achieved some amazing results. Just take a look at the last two weeks. In that time, we’ve surpassed $650 million raised on our platform and grown our investor community to over 1 million users.* All that, even as markets have weathered near-unprecedented volatility. Now we’re going on offense.
By acquiring SeedInvest, StartEngine will vastly increase the number of potential investment opportunities we can host on our platform, including some of the industry’s top fundraising companies. We will also drastically boost the size of our own investor community, while maintaining the high-quality investor profile that startups on our platform have come to expect.
The agreement is a boon for StartEngine’s cap table as well. Why? Well, under the terms of the offer, SeedInvest’s current parent company and one of the largest crypto platforms in the world, Circle, will become a minority shareholder of StartEngine. And as any founder will tell you, having the right backers can make all the difference.
When I first started conversations with SeedInvest about the acquisition, I knew that StartEngine’s strategy was on the verge of paying off. We need to wait for the regulators to finish their work and approve the transaction (par for the course in this industry). In the meantime, I’m so thankful to Ryan and James and the SeedInvest team for all they’ve already accomplished – and excited to take the torch, grow together, and help entrepreneurs and investors realize their dreams.
StartEngine Co-Founder and CEO
Completion of the acquisition is subject to closing conditions and regulatory approval. See additional information here.
* Total raised includes StartEngine’s own raises and includes investments that have been closed on, investments that are received but not yet closed on, and investments that have been committed but not yet received. Number of users is determined by counting investor profiles with unique email addresses.