Crowdfunding platform Seedrs acquired by Republic

English equity crowdfunding platform Seedrs has been acquired by Republic, an American investment platform for startups. The deal was valued at nearly 90 million euros. With the takeover, the companies aim to become a global investment platform.

The two investment platforms announced the deal today and are both big market players. Crowdfunding platform Seedrs has already raised 470 million euros. Republic has also funded a total amount of 400 million euros for startups on their platform. Recently the American company raised 130 million euros in a new investment round.

European and American market

Republic is already successful in the United States. With the takeover the company wants to catapult into European markets, according to the press release. With the newly injected capital, Seedrs wants to deliver new innovations and products for European investors. Moreover, the acquisition has the aim to become a global investment platform to serve American as well as European markets.

With the takeover Republic wants to catapult into European markets.

“We knew international expansion was necessary to achieve cross-bordered participation”, says Kendrick Nguyen, CEO of Republic. “We anticipate further developing the strengths of both companies from retail, secondaries, crypto, and communities to create a clear industry leader.”

Previous takeover Crowdcube failed

The deal with Republic follows a failed takeover of Seedrs by Crowdcube earlier this year. The fusion was stopped in its tracks by the English market authority CMA. The cooperation of the platforms would lead to unfair market competition, the organization warned.

The takeover is planned for early 2022.

The new acquisition, therefore, comes as somewhat of a surprise. But according to the statement by the companies, English market watchdog FCA has already given consent. The takeover is planned for early 2022.

Record year for Seedrs

The news is not totally unexpected however, as Seedrs has had a successful year. In the first half of 2021 the company generated a record revenue of 4,8 million euros – a 90 percent growth compared to the same period last year. The European platform for equity crowdfunding is also known for funding online bank Revolut, which is now valued at over 29 billion euros.