Seedrs Announce $100m Acquisition By US-Based Republic
Just over a year ago UK equity crowdfunding company Seedrs had announced their merger with rival Crowdcube. The deal was later blocked by the Competition & Markets Authority in March 2021, after which Seedrs had said they were looking at alternative ways of expanding. On 1st December 2021, TechCrunch reports, Seedrs entered into an acquisition agreement with US-based investing platform Republic, valuing the UK company at $100m.
The two companies share the mission of democratising investment, both offering retail investors the opportunity to buy equity in private businesses, particularly high-growth tech companies and start-ups.
Seedrs was the first regulated business of this kind, helping start-ups raise nearly £1.5bn since they started, including some household names such as digital bank Revolut.
Republic, who Seedrs had partnered with in the past advising their leadership team and allowing companies to co-raise on both platforms, also offers different investment categories such as crypto, debt and real estate and has almost $1bn under management through its private asset management practice.
Republic recently raised a $150m Series B from Valor Equity Partners, which was instrumental in the acquisition of Seedrs and in Republic’s intent of expanding globally.
Equally instrumental was last year’s EU crowdfunding legislation which allows players like Republic and Seedrs to access 27 national markets under a single regulatory regime, as remarked by Seedrs chairman Jeff Lynn, who will continue his role at Seedrs as well as leading Republic’s European expansion.
Kendrick Nguyen, Republic’s founder, said: “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.”
As part of the deal, Republic has committed further investment into Seedrs’ European expansion.
Seedrs CEO Jeff Kelisky, who will join Republic’s leadership team while continuing in his current role wrote on the company’s blog:
“Today is a big day. It’s a big step for Seedrs and, I believe, a day that will prove to be a giant leap for the industry. […] I am excited to say that Seedrs will not only continue to serve the exciting UK and European businesses and investors, but with Republic’s firepower behind us, we will continue to redefine the segment by leading on innovation, customer service, supporting diversity, and trust.”
The transaction is subject to approval by the Financial Conduct Authority and shareholders.