Circle, a trusted virtual currency platform in the United States, announced that it will be acquiring SeeedInvest, a platform that has been helping startups source for funding on the internet. However, Circle will not be abolishing the functions of the crowdfunding firm but it will now be helping startups raise capital by selling crypto.
As reported by Bloomberg, the crowdfunding firm features startups seeking funding on its platform where “investors can browse through businesses on the platform and then, depending on their eligibility, buy a piece of their favorite one.” SeedInvest has individually raised 11 million U.S dollars and has aided private startups to reach the 120 million U.S dollars mark in funding.
According to Jeremy Allaire, CEO, Circle, crypto securities are on their way to becoming a default definition of securities that “every business is going to adopt just like every business has a website.”
The deal to acquire SeedInvest is still awaiting regulatory approval. If Circle is given the green light by regulators, it may be closer to introducing tokens on their platform that are viewed as securities. Additionally, startups will be able to raise capital by selling digital currencies as Circle provides innovative ways for people to seek funding.
In the recent past, Circle was among other few cryptocurrency affiliated firms that have been seeking regulatory approval to become brokerage and trading platforms
Jeremy also noted that the bigger picture is not just how “companies do ICOs” but it’s “how do we support the tokenization of everything.”
The crowdfunding platform will see Circle add 30 more employees to its payroll. In February, Circle acquired Poloniex, a cryptocurrency exchange based in the United States. The amount of money Circle spent on acquiring SeedInvest remains a secret at the time of writing.
Even as Circle moves closer to helping startups raise capital by selling crypto, do you think startups will easily secure funding from cryptocurrency investors that from traditional funding methods?
Let us know your thoughts in the comments section below.