StartEngine acquires rival SeedInvest
Equity crowdfunding giant StartEngine teamed up with its reward-based crowdfunding counterpart Indiegogo earlier this year. The deal will allow Indiegogo's over 800,000 alumni to transition to regulation crowdfunding raises on StartEngine and introduce a huge community of entrepreneurs and backers to the equity crowdfunding platform.
StartEngine will acquire its rival SeedInvest, as if that weren't impressive enough. NowRX raised $20 M on SeedInvest alone in 2020, according to the terms of the deal. SeedInvest's current parent company and issuer of USD Coin, Circle, will also become a stakeholder in StartEngine. That is a vote of confidence from a huge financial institution, as the equity crowdfunding platform looks to cement its industry dominance.
The acquisition is expected to be another strong year for the firm. In 2022 StartEngine entered the Inc. Magazine's list of the 5,000 fastest growing companies in the country and increased its investor community to more than 1 million users.
They have a round open to the public, so you can join StartEngine's impressive list of backers. 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. In the first two quarters of 2022, funding for startups fell 23% worldwide as venture capital firms drew down their portfolios. Equity crowdfunding's democratic model has proven to be relatively resilient.
According to StartEngine, the consolidation could signal a new era, in which equity crowdfunding overtakes venture firms as the primary source of capital for early-stage businesses. The company has opened its fifth funding round of capital to the public building on the $65 million it has already raised from the crowd in order to make that new era a reality.
Join StartEngine on its mission to bring equity crowdfunding to mainstream. This post contains sponsored advertising content. This content is intended for informational purposes and is not intended to be investing advice. The completion of the acquisition is subject to regulatory approval and closing conditions. The 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 submitted but not yet received. There is no broker-dealer or intermediary involved in the offering of a Reg A offering through StartEngine Crowdfunding, Inc. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment. More information can be found in the most recent Supplement, Offering Circular and Related Risks.