A New Equity Crowdfunding Heavyweight? StartEngine Acquires Competitor SeedInvest By Faith Ashmore, Benzinga
Los Angeles, California
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November 22, 2022 09:45 AM Eastern Standard Time
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Already one of the largest retail investment platforms for startups in the U.S., StartEngine has agreed to acquire a major competitor SeedInvest.* The move will add SeedInvest’s community of 700,000 prospective investors to StartEngine’s 1 million and could make the combined platform the dominant player in the equity crowdfunding space.
With an impressive roster of more than 250 successful funding rounds – many of which have topped eight figures – SeedInvest has raised over $470 million in its 10-year run.
StartEngine itself has raised over $650 million for startups since launching in 2015.** Together, the two platforms will command more than $1 billion in overall funding and a robust pipeline of some of the top fundraising companies. A prime example: NowRX raised over $20 million on SeedInvest in 2020 alone.
Under the terms of the offer, SeedInvest’s current parent company Circle (the global digital asset firm, best known as the issuer of USD coin) will become a minor shareholder in StartEngine. The agreement from a major financial institution may constitute a huge vote of confidence for StartEngine, and as CEO Howard Marks notes, “having the right backers can make all the difference.”
Want to join StartEngine’s impressive list of backers? Become a shareholder today.
StartEngine Excels Despite A Slowing Market
The post-pandemic world brought an investment boom and soaring tech valuations, but for many founders, the era of easy access to capital has come to an abrupt end. Funding for startups fell 23% worldwide in the first two quarters of 2022 as venture capital firms drew down their portfolios. By contrast, equity crowdfunding’s democratic model has proven relatively resilient. Case in point: this year, StartEngine was inducted into Inc. Magazine’s list of the 5000 fastest growing companies in the country.
Against the backdrop of ongoing market volatility, StartEngine believes the consolidation could signal a new era, in which equity crowdfunding overtakes venture firms as a primary source of capital for early-stage businesses. The company has now opened its fifth funding round of capital to the public – building on the $65 million it’s already raised from the crowd – in order to make that new era a reality.
Join StartEngine on its mission to bring equity crowdfunding to the mainstream. Invest today.
One of the largest equity crowdfunding platforms in the U.S., led by Activision Co-Founder Howard Marks and advised by Kevin O'Leary, StartEngine launched in 2015 with the mission to help entrepreneurs achieve their dreams, while enabling everyday people access to private investment opportunities. To date, over $650 million* has been raised for startups and alternative assets on the StartEngine platform from more than 1 million users. In October 2020, StartEngine also became one of the first equity crowdfunding platforms to launch an investor marketplace where anyone can trade the securities of private companies that have raised capital via Regulation Crowdfunding and Regulation A.**
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*Completion of the acquisition is subject to closing conditions and regulatory approval. See additional information here.
**Total raised includes StartEngine’s own raises and is inclusive of investments that have been closed on, investments that are received but not yet closed on, and investments that have been submitted but not yet received. Reg A+ offering made available through StartEngine Crowdfunding, Inc. No broker-dealer or intermediary involved in offering.
This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment. Please see the most recent Supplement, Offering Circular and Related Risks for more information.
Contact Details
Duncan Brown
Company Website
https://invest.startengine.com/?utm_source=Benzinga&utm_campaign=benzinga-own-seedinvest-article1
