Helping Entrepreneurs & Small Business Owners Thrive: Record Investments on StartEngine Amid COVID-19 Pandemic
Our mission at StartEngine has always been to help entrepreneurs and small business owners achieve their dreams. We have watched with deep concern as the economic landscape has shifted rapidly for many American startups and local businesses, making achieving those dreams that much more difficult.
With venture capital and private equity firms slowing down deals or even halting investments altogether, access to capital is now a significant challenge. That is compounded by the difficulties many small businesses are having accessing the Small Business Administration loans that were legislated last month. Indeed, many companies that need capital will be ineligible for these loans, which our CEO wrote about previously on our blog.
It has never been easy to be an entrepreneur, but it is now more challenging than ever. According to The New York Times, it’s estimated that 75% of independent restaurants that have closed due to COVID-19 will never reopen, and that’s just one of many industries that has been affected by this pandemic.
During these uncertain times, we are inspired by so many entrepreneurs who are persevering and finding success. Companies like combustion engine innovator LiquidPiston, translating earpiece firm Waverly Labs, faith-based studio Called Higher Studios, and many more have been able to raise funding on our platform to grow their businesses. We’re proud to partner with these companies and more than 300 others that have used StartEngine for their funding needs.
We have also seen unprecedented interest from entrepreneurs who want to launch new equity crowdfunding offerings on StartEngine and have seen a significant increase in the number of companies applying to raise capital on StartEngine.
And it’s not just entrepreneurs who are turning to us now. We’re also pleased to report that investors remain excited about the opportunity to invest in and support the next generation of innovative companies and the community businesses that need their support. Now more than ever, small businesses need the support of their communities and the crowd to provide the funding they need to survive. StartEngine’s community has shown their continued support for the companies raising capital on our platform.
We are humbled to report that the first quarter of this year was our largest ever on StartEngine with more than $24.4 million invested through the platform.
While institutional investors are pulling back, the StartEngine community of investors is clearly prepared to continue supporting entrepreneurship even in these difficult times. We are honored to help those who fundraise on our platform navigate this era of uncertainty and emerge stronger. While the world is in crisis, we are ready to leverage the power of our community to help stabilize businesses and accelerate innovation.