StartEngine, the now largest U.S.-based equity crowdfunding platform, announced the successful acquisition of SeedInvest, another major participant in the equity crowdfunding sector. This union forms one of the largest global equity crowdfunding networks, boasting a combined pool of 1.7 million potential investors and over $1.1 billion in capital raised. This also makes it the largest U.S.-based equity crowdfunding platform by number of investors.
Established in 2014, StartEngine’s mission is to democratize access to capital for both entrepreneurs and investors. The purchase of SeedInvest, a New York-based equity crowdfunding platform, enables StartEngine to broaden its reach and offer more comprehensive services to startups and small businesses seeking funding.
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Since its founding in 2012, SeedInvest has positioned itself as a top platform for startups to secure capital and for investors to support promising early-stage companies. The company has successfully funded over 250 startups, with numerous portfolio companies achieving successful exits via acquisitions or public offerings.
StartEngine announced the SeedInvest acquisition in late October of 2022. But the deal was subject to regulatory approval and scrutiny. The deal did not receive any substantial pushback from regulators meaning the deal finalized at early Monday morning.
The unified entity will capitalize on the strengths of both platforms, creating a more robust and diverse offering for entrepreneurs and investors. StartEngine and SeedInvest will operate as one platform under the StartEngine brand, providing users with access to a broader array of investment opportunities and services. The SeedInvest platform will eventually be phased out.
This acquisition represents a significant milestone in the crowdfunding sector, paving the way for future expansion and innovation in startup investment.
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