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September 28, 2021 | 5 Min Read

StartEngine Reports 146% Revenue Growth In First Half of 2021

StartEngine Reports 146% Revenue Growth In First Half of 2021

StartEngine has reported its financial results for the six months ended June 30 2021. Overall growth is strong, and we are very encouraged by our performance. Top line revenue growth went up 146% year-over-year to $13.36 million for the first half of 2021, and we successfully transitioned from losses to profits of over $2 million. 

Our traditional crowdfunding business for startups continues to expand, and we are diversifying into other alternative assets as well. As part of our goal to increase liquidity for investors, we’ve also launched our own secondary trading platform.

Financial Strength

Across the board, we are pleased with the growth achieved through the first six months of the year ended June 30.

  • Top line revenue growth is up 146% year over year to $13.36 million, with gross profits up 186% to $11.19 million in the first half of 2021. For context, StartEngine’s total full year revenues in 2020 were $12.5 million. We did more revenue in the first 6 months of 2021 than we did in all of 2020.
  • We successfully transitioned from operating at a loss, to producing operating income of $2.13 million.
  • Net income of $2.09 million, or $0.07 per share through the first half of the year vs. a loss of $0.04 per share during the same period in 2020.
  • Total shareholders equity (the company’s total assets minus total liabilities) of $25.38 million vs. $8.8 million in June of 2020.

Regulation crowdfunding remains the largest piece of our business, with revenues increasing 153% year over year to $6.94 million. We believe the growth in the amounts was partially driven by the laws increasing the cap limits for Regulation CF offerings to $5 million. 

Commissions from Regulation A offerings are our second highest source of revenue, bringing in $3.57 million in the first half of the year. The average amount raised by issuers is increasing, which helped grow this segment of the business by 264% year over year.

Burgeoning segments of new revenue include StartEngine Collectibles, and StartEngine Secondary. Watch our CEO Howard Marks discuss our latest filing in a live webinar and participate in a Q&A with our shareholders and investor community:

Looking Ahead

While pleased with our financial results through the first half of the year, StartEngine remains focused on the future. To date, we have raised over $400 million for businesses. Our goal is to carry out $10 billion in equity raises by 2029. 

Based on current trends, we don’t see our growth slowing down. Cash flow is strong, and we are continually working to increase both the quantity, and quality of crowdfunding options. To do this, StartEngine is expanding further into alternative assets through StartEngine Collectibles

Our first foray outside of startups is wine collections. This is an asset class quickly gaining popularity due to its ability to compete with the S&P 500 over time. Our first five wine collections have already sold out, with more planned for the future. Soon we’ll be adding options like real estate, sports memorabilia and more.

StartEngine Secondary is our new trading platform where investors can buy and sell shares in certain companies that have raised capital on StartEngine. Our key goal with StartEngine Secondary is to drive increased liquidity for shareholders, and spur investor interest in the space.

We cannot say thank you enough to investors using our platform, as well as those who are invested in StartEngine. We’re not done yet! There are very exciting things to come.

 Want to be a part of the crowdfunding space? StartEngine is currently doing its own offering! You too can own shares in our business, and be a part of the journey as we grow in this exciting area of investment. More information on our offering is available here.

To read our full form 1-SA filing, click here

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.

Companies which intend to be quoted on StartEngine Secondary’s new alternative trading system (the “ATS”) are subject to certain requirements which the company may or may not be able to satisfy in a timely manner. Even if a company is qualified to quote its securities on the ATS, there is no guarantee an active trading market for the securities will ever develop, or if developed, be maintained. You should assume that you may not be able to liquidate investments or be able to pledge shares as collateral.

FOR ANY SERIES OF STARTENGINE COLLECTIBLES FUND I LLC FOR WHICH THE OFFERING STATEMENT FOR THAT OFFERING HAS NOT YET BEEN QUALIFIED BY THE SEC:

NO MONEY OR OTHER CONSIDERATION IS BEING SOLICITED, AND IF SENT IN RESPONSE, WILL NOT BE ACCEPTED.

NO OFFER TO BUY THE SECURITIES CAN BE ACCEPTED AND NO PART OF THE PURCHASE PRICE CAN BE RECEIVED UNTIL THE OFFERING STATEMENT FILED BY THE COMPANY WITH THE SEC HAS BEEN QUALIFIED BY THE SEC. ANY SUCH OFFER MAY BE WITHDRAWN OR REVOKED, WITHOUT OBLIGATION OR COMMITMENT OF ANY KIND, AT ANY TIME BEFORE NOTICE OF ACCEPTANCE GIVEN AFTER THE DATE OF QUALIFICATION.

AN INDICATION OF INTEREST INVOLVES NO OBLIGATION OR COMMITMENT OF ANY KIND.

AN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC. YOU MAY OBTAIN A COPY OF THE PRELIMINARY OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT FROM HERE.

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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.

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