Circle, an infrastructure company and operator of SeedInvest, a leading startup fundraising platform in the United States, has announced its role in leading Crowdcube’s $13.5 million round by taking a $10.5 million stake in the company, bringing two of the most leading and efficient platforms in their respective markets together.
Crowdcube is the United Kingdom’s leading startup funding platform. The strategic alliance will make it possible for an international future for internet-native capital generation at all stages of private fundraising, from seed to public offering.
Funds to be used to Grow Startups
Previously, the United Kingdom and the United States were the sole marketplaces for internet startup funding, but that changed on November 10 when new European-wide legislation came into effect. Crowdcube will use the funds to speed its entry into growing European markets, taking advantage of a new European policy that establishes uniform criteria for investment- and lending-based crowdfunding services related to company funding.
The funding, which was made using USD Coin (USDC), the foremost dollar virtual currency fueling always-on internet-native transactions and fees, facilitates Crowdcube’s aspirations of enabling entrepreneurs to raise cash from their loyal communities and is Circle’s largest strategic investment in the European market to date. Circle, which bought SeedInvest in 2019, is committed to balancing the competitive landscape for entrepreneurs and individual investors.
Reaction to the Partnership
Ryan Feit, CEO, and Co-Founder of SeedInvest reacted to the news of the partnership, noting his excitement of having to work with Crowdcube and expanding their platform. He said, “Private capital online fundraising is at a pivotal moment of maturation. We are thrilled to work with Crowdcube to roll out online fundraising across Europe and celebrate this significant milestone towards the inevitable global future of the industry. Expanding online fundraising to new markets creates a massive opportunity for internet native capital formation where individuals and businesses can connect and transact digitally from anywhere.”
Darren Westlake, CEO, and Co-Founder of Crowdcube issued a statement explaining why the partnership is poised to change the industry. He said, “Combining Circle’s strategic investment with our decade of knowledge and experience of capital raising in Europe, Crowdcube is extremely well-positioned to capitalize on our first-mover advantage into Europe’s high growth investment market. Capital raising and private company investing have never been so exciting. In the first instance, we’re considering a crowd round to offer Crowdcube’s community of investors to participate in our round, alongside Circle, supporting our growth as Europe’s preferred private investment marketplace.”
Companies in the European Union can now raise up to €5 million from European investors according to recent legal reforms. Last week, Crowdcube revealed that it intends to be the first platform to receive regulatory approval from throughout Europe and the United Kingdom. Because of Crowdcube’s first-mover advantage in Europe, investors and entrepreneurs will be able to take advantage of cross-border equity opportunities.