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Crowdfunding platform Seedrs is expanding to the US

Nov 2, 2015, 16:53 IST

Seedrs cofounder and CEO Jeff LynnSeedrs

UK crowdfunding platform Seedrs has confirmed that it will launch in America after the US government passed a new law that makes it legal for anyone, not just accredited investors, to back equity crowdfunding campaigns in return for equity.

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The US Securities and Exchange Commission voted on Friday to implement "Title III of the JOBS Act." As a result, everyone in the US can now back early-stage businesses through equity crowdfunding campaigns.

London-based Seedrs allows anyone to invest as little as £10 in businesses in return for a stake of that company. Seedrs said in a press release that it will launch a beta version of its platform in the US "within weeks."

Jeff Lynn, cofounder and CEO of Seedrs, said in a statement: "The beta testing we are announcing today will be our first foray into the [US] market, and we look forward to growing our presence there significantly in 2016."

Over 270 deals have been funded on Seedrs to date, with businesses raising £3.5 million between them each month, on average.

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Seedrs started preparing for its US expansion in late 2013 when it acquired California-based crowdfunding platform Junction Investments.

Since then, Lynn said he has been working "tirelessly" with US authorities to inform regulation around the crowdfunding industry.

"I have had the privilege of being involved in the lawmaking process for US crowdfunding ever since the JOBS Act was introduced in 2011, and I am very pleased to see that the SEC has finally adopted rules implementing Title III.

"We believe this heralds the emergence of equity crowdfunding as a vibrant form of finance in the United States - just as it has become in the UK and Europe - and Seedrs is perfectly positioned to take advantage of the sector's growth."

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