Get iOS App Sign Up
January 13, 2023 | 4 Min Read

Gift Horses and Rising Tides: Why StartEngine’s Funding Round Is Good for Founders

Gift Horses and Rising Tides: Why StartEngine’s Funding Round Is Good for Founders

Mr. Wonderful here –

There’s an old expression my mother used to say: don’t look a gift horse in the mouth. What it means is that when someone’s doing you a favor – don’t whine about it.

So you can imagine my surprise when I spoke with Howard and the team, and learned that some of the companies raising capital on the platform had the gall to complain about StartEngine’s live funding round. As far as I’m concerned, if you need proof that this equity crowdfunding stuff actually works, look no further than StartEngine’s latest raise, which currently stands over $10 million. That should come as very welcome news to founders.

By the Numbers

Look, I get feeling skeptical. You’re probably asking yourself: if StartEngine is raising capital on its own platform, doesn’t that siphon dollars away from my funding round?

That’s why I asked the team to pull a couple stats I think you’ll find very interesting. Let’s just compare users on the platform who’ve invested in StartEngine itself (aka Owners) versus those who haven’t (Non-Owners).

Investment Activity of Owners vs Non-Owners

Stat

Owners

Non-Owners

Avg. No. of Investments

6.7

2.3

Avg. Dollars Invested*

$7,347

$1,961

Owners Bonus Members (%)

56%

11.9%

You know me – I love the numbers. And right off the bat, what’s clear is that Owners have a much higher lifetime value than other investors. On average, StartEngine shareholders make close to three times as many investments as the rest; they also contribute roughly three times the amount of dollars to raises. That’s not just good news for StartEngine, that’s good news for every eligible company raising capital on the platform.

Let’s talk about that last stat too: Owners Bonus Membership. Investors in StartEngine opt into the program at nearly five times the rate of everyone else. As a rule, that means they’re much more incentivized to continue investing – particularly if your raise offers Owners Bonus.

Need a refresh? Owners Bonus Members automatically receive 10% bonus shares when they invest in participating raises. Learn more.

Rising Tides Lift All Boats

If you’ve ever spoken to my friend Howard Marks, you’ve likely heard him joke that at StartEngine they, “eat their own dog food.” Essentially what he’s saying is that they’re working through this equity crowdfunding thing alongside you. That means they’re constantly testing and figuring out best practices to acquire funds through the crowd. I’ll give you a recent example – not too long ago Howard shared with me that the team had managed to boost conversion rates (i.e. how many people invest out of all the visitors to a page) on their website by more than 50%. That’s not something I’d sneeze at – what it is is real value for founders.

When the team at StartEngine talks about eating its own dogfood, that also means they’re spending ad dollars to bring new investors to the platform. Sure, those fresh-faced investors may look at StartEngine’s funding round, but a lot of them will go on to explore other opportunities. And if they do become StartEngine shareholders, well as we’ve seen, all the better for you.

Another favorite expression of my mother’s (I’m sure you know this one): a rising tide raises all boats. Now you can call it a gift horse or a rising tide – but at the end of the day, if you’re a founder, what’s good for StartEngine is good for you.

Kevin O’Leary is a paid spokesperson for StartEngine. View the details here.

*Average dollars invested was calculated by StartEngine in January 2023 by dividing the lifetime value of Owners and Non-Owners by StartEngine’s commission.

Want to stay up to date with the latest posts from StartEngine? Sign up here:

You May Also Like

Important Message

IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. INVESTMENTS ON STARTENGINE ARE SPECULATIVE, ILLIQUID, AND INVOLVE A HIGH DEGREE OF RISK, INCLUDING THE POSSIBLE LOSS OF YOUR ENTIRE INVESTMENT.

www.StartEngine.com is a website owned and operated by StartEngine Crowdfunding, Inc. (“StartEngine”), which is neither a registered broker-dealer, investment advisor nor funding portal.

Unless indicated otherwise with respect to a particular issuer, all securities-related activity is conducted by regulated affiliates of StartEngine: StartEngine Capital, LLC, a funding portal registered here with the US Securities and Exchange Commission (SEC) and here as a member of the Financial Industry Regulatory Authority (FINRA), or StartEngine Primary, LLC, a broker-dealer registered with the SEC and FINRA / SIPC. You can review the background of our broker-dealer and our investment professionals on FINRA’s BrokerCheck here. StartEngine Secondary is an alternative trading system regulated by the SEC and operated by StartEngine Primary, LLC, a broker dealer registered with the SEC and FINRA.

Investment opportunities posted and accessible through the site are of three types:

1) Regulation A offerings (JOBS Act Title IV; known as Regulation A+), which are offered to non-accredited and accredited investors alike. These offerings are made through StartEngine Primary, LLC (unless otherwise indicated). 2) Regulation D offerings (Rule 506(c)), which are offered only to accredited investors. These offerings are made through StartEngine Primary, LLC. 3) Regulation Crowdfunding offerings (JOBS Act Title III), which are offered to non-accredited and accredited investors alike. These offerings are made through StartEngine Capital, LLC. Some of these offerings are open to the general public, however there are important differences and risks.

Any securities offered on this website have not been recommended or approved by any federal or state securities commission or regulatory authority. StartEngine and its affiliates do not provide any investment advice or recommendation and do not provide any legal or tax advice with respect to any securities. All securities listed on this site are being offered by, and all information included on this site is the responsibility of, the applicable issuer of such securities. StartEngine does not verify the adequacy, accuracy or completeness of any information. Neither StartEngine nor any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy, or completeness of any information on this site or the use of information on this site. See additional general disclosures here.

By accessing this site and any pages on this site, you agree to be bound by our Terms of Use and Privacy Policy, as may be amended from time to time without notice or liability.

Canadian Investors

Investment opportunities posted and accessible through the site will not be offered to Canadian resident investors.

Potential investors are strongly advised to consult their legal, tax and financial advisors before investing. The securities offered on this site are not offered in jurisdictions where public solicitation for offerings is not permitted; it is solely your responsibility to comply with the laws and regulations of your country of residence.

California Investors Only – Do Not Sell My Personal Information (800-317-2200). StartEngine does not sell personal information. For all customer inquiries, please write to contact@startengine.com.

StartEngine’s Reg A+ offering is made available through StartEngine Crowdfunding, Inc. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment. For more information about this offering, please view StartEngine’s offering circular and risks associated with this offering.

Invest in StartEngine

190% YoY Growth: Invest in the leading equity crowdfunding platform.

This Reg A+ offering is made available through StartEngine Crowdfunding, Inc. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment. For more information about this offering, please view StartEngine’s offering circular and risks associated with this offering.

 

Kevin O’Leary is a paid spokesperson for StartEngine. Read the 17(b) disclosure here.

Founder's Summit Application