Republic, a New York-based investment platform that provides access to startups, real estate, crypto, and video game investments, has acquired UK crowdfunding platform Seedrs at approximately $100M (approx €88M).
The acquisition comes after Republic’s recent $150M (approx €132.6M) Series B funding announcement led by Valor Equity Partners.
Both Republic and Seedrs have maintained a longstanding partnership over the last four years. The Seedrs leadership team served as trusted advisors to Republic’s leadership team.
The announcement comes after the Competition & Markets Authority, the UK competition regulators, blocked Seedrs merger with Crowdcube earlier this year.
The transaction is subject to the consent of, among others, the Financial Conduct Authority (FCA) and Seedrs shareholders. The transaction is expected to be completed in early 2022.
Aim of the acquisition
Republic says this move will advance its mission to democratise private investment globally. Initially, the company aims to expand its presence in Europe.
For the time being, Seedrs and Republic will continue to operate as normal with a focus on expansion across Europe and globally. As a part of the takeover, Jeff Kelisky, CEO of Seedrs, will join Republic’s leadership team and continue as Seedrs CEO.
Seedrs leadership team will focus on the UK business and Republic’s European expansion plans.
The US investment firm Davidson Kempner Capital Management LP will become a shareholder of Republic through their acquisition of 30 per cent of Seedrs shares.
Seedrs shareholders and optionholders will receive “core consideration” of approximately £23.59 per Seedrs share.
Republic: What you need to know
Founded in 2016, Republic allows everyone to invest in private market equity, debt, or crypto offerings through their retail platform
The company operates several distinct business lines including a retail investment platform, a private capital division, and a blockchain advisory practice. The company has almost $1B under management through its private asset management practice.
“Republic launched with the mission to make private investments accessible to all,” says Kendrick Nguyen, Republic’s founder & CEO,
“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,” he added.
Seedrs: What you need to know
Founded by Jeff Lynn and Carlos Silva in 2012, Seedrs is a London-based online investment platform. It allows investors to buy and sell shares in private companies, and ambitious entrepreneurs to gain investment for their businesses while building communities in the process.
Seedrs was the first regulated securities crowdfunding platform in the world. Since its inception, the company has funded more than 1,400 deals, with nearly £1.5B (approx €1.7B) invested on the platform to date.
Seedrs is backed by various European institutional investors and over 4,600 of its customers.
Jeff Kelisky, CEO of Seedrs, says, “Seedrs’ ambition has always been to build a global private equity marketplace. 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.”