SeedInvest is an

equity crowdfunding Equity crowdfunding is the online offering of private company securities to a group of people for investment and therefore it is a part of the capital markets. Because equity crowdfunding involves investment into a commercial enterprise, it ...

platform that connects

startups A startup or start-up is a company or project undertaken by an Entrepreneurship, entrepreneur to seek, develop, and validate a scalable business model. While entrepreneurship refers to all new businesses, including self-employment and businesses t ...

with

investors An investor is a person who allocates financial capital with the expectation of a future return (profit) or to gain an advantage (interest). Through this allocated capital most of the time the investor purchases some species of property. Type ...

online. The company was founded in 2012 and launched in 2013. SeedInvest has focused on building liquidity in the platform by attracting high-net-worth individuals, family offices and venture capital firms. SeedInvest screens and vets deals before allowing them to take advantage of the JOBS Act exemption permitting General Solicitation. In September 2014 the company launched a partnership with Angel Investing website Gust. In October 2018, SeedInvest was acquired by peer-to-peer payment company Circle Internet Financial Ltd.

Funding

SeedInvest raised a significant portion of its own $4.15 million in total

Series A A series A round (also known as series A financing or series A investment) is the name typically given to a company's first significant round of venture capital financing. The name refers to the class of preferred stock sold to investors in exchan ...

funding online in April 2014 from Scout Ventures and a mix of venture capital and angel investors. An earlier round of seed capital was raised in 2013. In 2020, it has raised a total of $5.1 million. The platform sends start-ups for intensive verification; investors can participate for as little as $500 with a 2% fee. Fees, capped at $300, are refundable if the listing fails to meet its fundraising goal.

JOBS Act

SeedInvest founders Ryan Feit and James Han were involved in consultation with the

U.S. Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...

(SEC) and in the

United States Congress The United States Congress is the legislature of the federal government of the United States. It is bicameral, composed of a lower body, the House of Representatives, and an upper body, the Senate. It meets in the U.S. Capitol in Washing ...

for the passing of the JOBS Act. The

JOBS Act The Jumpstart Our Business Startups Act, or JOBS Act, is a law intended to encourage funding of small businesses in the United States by easing many of the country's securities regulations. It passed with bipartisan support, and was signed into ...

included provisions that permit online equity crowdfunding by platforms such as SeedInvest. SeedInvest hosted the first Testing The Waters campaign under the new

Regulation A In the United States under the Securities Act of 1933, any offer to sell securities must either be registered with the United States Securities and Exchange Commission (SEC) or meet certain qualifications to exempt it from such registration. Reg ...

rules for equity crowdfunding on June 19, 2015.

References

External links

Official Website
{{Crowdfunding platforms Equity crowdfunding platforms Financial services companies established in 2012 Crowdfunding platforms of the United States 2012 establishments in New York City