BY CNA team - October 6, 2018
Circle buys crowdfunding platform SeedInvest
Equity crowdfunding platform SeedInvest has been bought over by Boston-based Circle, the operator of the Poloniex crypto exchange for an undisclosed amount.
Bloomberg, which reported the acquisition, says that the terms of the transaction were not disclosed.
The news wire quoted Circle CEO Jeremy Allaire as saying that SeedInvest is in the forefront of collaborating with government to find innovative ways for people to raise money.
“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,” he says.
The news wire noted that Circle is one of several firms operating crypto exchanges that are pursuing plans to register as a brokerage and trading platform. Others include Coinbase and Uphold.
If regulators approve the acquisition, then Circle will be able to do what SeedInvest does but with cryptocurrencies.
Bloomberg says the deal could also put Circle one step closer to listing tokens that may be considered securities, an increasingly sought after privilege at a time when financial watchdogs are stepping up scrutiny of virtual money.
SeedInvest, founded in 2012, assists startups to raise money from individuals through the internet, which are given equity in return. This is done through its broker-dealer SI Securities.