Circle Invests in Crowdfunding Platform Crowdcube With $10.5M Stake

U.K.-based crowdfunding platform Crowdcube, which raises funds to support entrepreneurs and their businesses, has raised $13.5 million in a funding round, with a stake valued at about $10.5 million in the business coming from Circle Internet Financial, LLC, owner and operator of SeedInvest.

The joint effort between Crowdcube and the payments company and stablecoin operator, will lay the foundation for fundraising to support every stage of business establishment, from seed stage to public offering, according to the Tuesday (Nov. 23) announcement. The funding also supports Crowdcube’s mission to empower entrepreneurs to generate funding from their communities.

Since its founding in 2011, Crowdcube has funded more than 1,130 business deals, according to the company’s website.

The most recent round of funding will enable Crowdcube to speed up its debut into emerging European markets, taking advantage of recent legislation that provides uniform rules across Europe for investment-based and lending-based crowdfunding services earmarked for business funding.

Circle’s investment is its largest to date in the European market.

“Private capital online fundraising is at a pivotal moment of maturation,” said SeedInvest CEO and co-founder Ryan Feit. “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.”

In March 2019, Circle closed on its acquisition of SeedInvest, an equity crowdfunding platform, according to PYMNTS.

See also: Circle Pay Closes On Acquisition Of SeedInvest

In July, Circle announced that it anticipated going public in the fourth quarter of this year via SPAC combination with Concord Acquisition Corp., according to PYMNTS. At the time, the deal valued Circle at $4.5 billion, according to PYMNTS.

Read more: Circle Announces SPAC Listing Plans; Deal Combines Crypto’s Hyper Growth With USD’s Stability

Earlier this month, Circle, the company behind the USD Coin, the stablecoin backed by the dollar, introduced Circle Ventures, a new initiative created to invest in “compelling, early-stage blockchain projects and companies,” according to PYMNTS.

Companies in the Circle Ventures portfolio would receive access to SeedInvest’s network of more than 500,000 investors, as well as insight from experienced professionals related to compliant internet capital formation.

Related: USDC Coin Issuer Circle Launches Venture Fund