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Dear NextSeed Community,
We hope you and your families remain safe as we near the end of 2020. This year has been full of surprises that have impacted so many people and businesses everywhere, but we are incredibly proud to be a part of this community that has stuck together and continues to move forward through it all.
As we look to the future and continue to focus on growing our vibrant ecosystem, we are excited to inform you that the NextSeed investment platform will be joining forces with Republic, another leader in the online private investment industry that cares as deeply as we do about democratizing finance for everyone.
Over six years ago, inspired by the passage of the JOBS Act in 2012, we began building NextSeed on a singular vision – we wanted to build a technology-driven online investment platform where small businesses could raise capital directly from their communities, and anybody could easily invest in their favorite businesses in a secure, seamless manner. We knew that this journey would not be easy nor quick, but that did not matter. We believed it was worth pursuing, so we did.
We are as committed to this vision today as we have ever been, especially as the world is catching up. Just two weeks ago, the SEC announced changes to Regulation Crowdfunding that will enable us to expand the scope of our services to businesses and investors dramatically.
Now, by partnering with Republic, we believe that we can achieve so much more together for our entire business and investor community. We have known and worked with the Republic team for over four years, as both firms tried to strengthen and grow this industry since the very beginning of this movement. Founded by veterans of AngelList, Republic has grown into one of the top private investing platforms in the industry with 800,000+ members and over $200 million facilitated through individual as well as institutional investors. From a distance, we have been impressed with the incredible subject matter expertise they have established across various industry verticals including tech startups, CPG companies, gaming, real estate, and crypto. By now combining NextSeed’s expertise in small business financing and local community investing with the scope and resources of Republic, we are confident we can provide even better services and more opportunities for our members in the future.
As you have hopefully seen and experienced over the years, the NextSeed team has always tried to do everything we could to earn the trust of our members, and we have never taken that for granted. This is no exception. As part of the transaction, Youngro will also be joining Republic as its COO (while remaining as CEO of NextSeed’s parent company as well as its affiliated broker-dealer, NextSeed Securities, LLC) and, along with the entire NextSeed and Republic team, ensure that that the level of service and quality you have come to expect will continue.
In terms of the specific impact this will have on investors and businesses on the NS platform, we have compiled some FAQ’s for what this will mean, and you can view here. In short, nothing major is changing at this time as we will continue to operate the NextSeed platform exactly as-is today. Here are a few highlights:
• Your NextSeed investor accounts will remain unchanged. If you would like to invest in any offerings hosted on Republic, you will be able to do so by creating a separate Republic account. In due course, we plan to thoughtfully combine your Republic and NextSeed accounts.
• NextSeed investors can continue to expect payments and distributions to be handled through your NextSeed account as always, and you will also continue to receive 1099 tax forms via NextSeed.
• NextSeed businesses and existing investments will still be serviced by NextSeed Services, and the payment processing and support mechanisms will not change.
• NextSeed’s physical operations will continue to be based in Houston, TX where we originally started. This will now also become Republic’s office in Texas as it expands its physical presence beyond Silicon Valley and New York.
• NextSeed Securities, LLC, our SEC-registered broker-dealer, remains an independent practice and will continue launching new offerings on www.nextseed.com in the future. We are very excited about the businesses and entrepreneurs we’re working with and look forward to what we can accomplish together beyond 2020.
Going forward, we will actively work with Republic to improve and enhance your overall experience, and we will inform you whenever formal changes are made to our platform. While the NextSeed investment platform will now be a part of Republic, NextSeed’s parent company will continue operating as an independent company to explore and build new solutions for our community and for the industry.
Following this unique transaction with a truly mission-aligned partner, we are excited to further our charge in this dynamic industry. We are forever grateful to our community members for being part of this journey, and we look forward to continuing to serve you the best we can.
With all our appreciation,
Youngro Lee, CEO & Co-founder
Abe Chu, CMO & Co-founder
Bob Dunton, CTO & Co-founder