According to an announcement on the crowdfunding platform SeedInvest’s website, Circle got regulatory greenlight to move forward with the purchase.
“We believe that tokenizing startups can take things to another level by providing liquidity, enabling capital to flow across geographic borders, and paving the path for completely new types of capital formation. And startups are just the beginning,” Ryan Feit and James Han, the two co-founders of SeedInvest declared before joining Circle.
“SeedInvest will continue to empower startups to raise capital through Reg D, Reg CF and Reg A+ and will provide both accredited and non-accredited investors with access to startup investments,” they say.
At this point, it’s not yet clear how much money there was involved in the transaction. However, recently, Circle raised $250 million with their investors including Goldman Sachs, IDG Capital, Accel, CICC, General Catalyst, Bitmain, and Jim Breyer.
FINRA gives Circle the greenlight to buy SeedInvest
“As a crowdfunding pioneer in the United States, SeedInvest helped to shape the JOBS Act. Today they are at the forefront of enabling startups to raise capital directly from investors over the internet — creating new capital formation options for startups and growth companies, and giving average retail investors the opportunity to invest directly into innovative private companies,” Sean Neville and Jeremy Allaire, co-founders of Circle stated in a Medium article.
“Circle will continue to work closely with leading regulators in the US such as the SEC and FINRA as it evaluates the evolution of private capital market products and services using crypto assets and blockchain technology,” the statement also mentions.
Circle has been recently on quite a roll. Just last year, Circle made a big move by buying Poloniex. The company is seemingly moving into the ICO space and looks to the future as the market is welcoming security tokens.