SeedInvest, an equity crowdfunding platform for startups, is opening an office in Miami to fund promising new companies in the area.
Ryan Feit, the New York-based company's co-founder and CEO, moved to Miami to open the new location. In a statement, Feit said he expects the city to grow into a global tech hub over the next decade, and SeedInvest wants to establish itself in the area before that happens.
"The current energy around the Miami startup scene is contagious," he said, "and I am thrilled to formally expand SeedInvest's footprint here."
SeedInvest did not say specify where its new office is located. The company did not immediately respond to a request for comment.
SeedInvest reports it has a community of 500,000 investors who have funded hundreds of startups that use its platform.
Equity crowdfunding allows a group of ordinary investors to put money into a business in exchange for equity (typically shares of a company). It's a key source of seed capital for startups that struggle to obtain institutional funding.
Recent changes to U.S. Securities and Exchange Commission regulations – including a move that lets startups raise up to $5 million every 12 months through equity crowdfunding – give businesses the ability to obtain more capital through the process.
Melissa Krinzman, managing partner at Miami-based Krillion Ventures, was one of SeedInvest's early investors.
"I have watched SeedInvest scale rapidly over the past five years to become the largest equity crowdfunding platform in the country," said Krinzman, who also serves as the city of Miami's inaugural venture capitalist in residence. "I am confident they will become a key contributor to and resource for Miami's dynamic tech community."
Miami is also home to the Arora Project, an equity crowdfunding media agency and venture capital firm. San Francisco-based WeFunder, among the largest regulation crowdfunding platforms in the country, announced it acquired a stake in the Arora Project in May.
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