Crowdfunding platform Seedrs has been snapped up by Republic in a $100 million deal.
US-based Republic said the swoop for the London firm will create the first global private investment marketplace with offerings across North America and Europe.
A four-year partnership between the companies has allowed businesses to co-raise on both platforms, reaching a greater number of investors.
They have helped thousands of entrepreneurs in the US, Europe and the rest of the world to raise growth capital from a combined investor community of over two million.
Seedrs was the first regulated securities crowdfunding platform in the world and has seen nearly £1.5 billion invested on its platform to date. It was also the first to introduce a secondary marketplace and has hosted some of the industry’s most significant success stories, including digital bank Revolut, now valued at over $33bn.
A merger between Seedrs and Crowdcube was terminated in March over competition concerns.
Seedrs said it will learn from and adopt Republic’s expertise and advancement in crypto, real estate, gaming and more types of investment offerings. Simultaneously, Republic is eager to expand across Europe and implement a secondaries market.
For the time being, Seedrs and Republic will continue to operate as normal. If and when the acquisition is formalised, they said they anticipate continuing business as usual for at least the first six months while strategic post-merger integration discussions and planning continues.
“Seedrs’ ambition has always been to build a global private equity marketplace,” said Jeff Kelisky, CEO of Seedrs.
“This transaction is a natural development of our partnership with Republic to achieve and go beyond that ambition. We share a similar culture, a common goal, and a commitment to the strategic opportunities that lie ahead.
“We have great admiration for the teams at Republic, and together we can accelerate our plans to create a powerful global private investment marketplace that will transform the finance ecosystem and the communities they serve.”
Kendrick Nguyen, Republic’s founder & CEO, added: “Republic launched with the mission to make private investments accessible to all.
“We knew international expansion was necessary to achieve cross-bordered participation. In working with Seedrs, we have admired their technological capabilities, the strength of their team and their strong presence in the UK and soon Europe.
“We anticipate further developing the strengths of both companies from retail, secondaries, crypto, and communities to create a clear industry leader.
“We look forward to working together to shape the future of the industry at this critical stage of growth and innovation.”