London-based Seedrs has launched into the US after the US Securities and Exchange Commission (SEC) announced it was to open up equity crowdfunding to armchair investors.
The crowdfunding platform, which enables people to invest in start-up companies online, will launch a test platform in the US within weeks, with an official launch expected in early 2016.
The new ruling could kick off a new wave in equity crowd-funding and open up a massive new front for European platforms.
“We believe this heralds the emergence of equity crowdfunding as a vibrant form of finance in the US – just as it has become in the UK and Europe – and Seedrs is perfectly positioned to take advantage of the sector’s growth,” said Jeff Lynn, CEO.
While it is no longer necessary to be an accredited, higher net worth investor to back crowdfunding campaigns in the US, the new rules will be stricter than in the UK.
The amount that a business can raise is capped at $1 million and the amount that people can invest also has a set of caps. In the UK, companies can raise up to €5 million and there is no limit on the amount any individual can invest.
The Seedrs platform, launched in 2008, allows all types of investors to make investments from as little as €10. It has funded over 270 deals to date, and on average raised £3.5 million per month.
Last year the company acquired a California-based crowdfunder, Junction Investments, which will help facilitate the expansion.
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