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October 20, 2022 | 3 Min Read

There Are Now 1 Million Users On StartEngine – Here’s How We Got There

There Are Now 1 Million Users on StartEngine – Here's How We Got There

There Are Now 1 Million Users On StartEngine – Here’s How We Got There

This week, we reached one million users on StartEngine. Wow. That’s a million people who are interested in diversifying their investments into startups and other alternative assets.  Sometimes, as the founder, it’s hard to wrap my mind around how far we’ve come since launching in 2015. And even though equity crowdfunding is still in its infancy – it’s true, we’ve crossed a lot of milestones in a short time.

So let me take you back into our brief history of how we grew from an idea into the largest equity crowdfunding platform by revenue in 2021, to a one-million-strong investor community in 2022.

The Past

Before equity crowdfunding, ordinary investors could buy shares of publicly traded companies, mutual funds, and ETFs. But their rich neighbor could buy things like Uber before its IPO. Why? Well, the rich neighbor had something called accreditation. Basically, certain albeit risky assets, like startups, were only available to the ultra-wealthy.

This all changed with the advent of the JOBS Act, which was voted into law in 2012 and mostly implemented by 2016. So what exactly did the JOBS Act change? Now everyone can own shares of startups and privately held companies. That means everyday people can decide for themselves if they want to take on the risk – and massive potential upside – of startup investing.

Enter StartEngine

We started with a bang in 2015. Our first offering raised close to $17 million under Regulation A+ (the first rule enacted under the JOBS Act allowing equity crowdfunding). A little less than a year later in May 2016, we launched our first offers under Regulation Crowdfunding, which offered a lower barrier to entry for startups but with lower funding limits.

It felt like StartEngine was getting ready to hit the big time, as we also launched our OWN funding round on equity crowdfunding – around here, we like to say that we eat our own dog food. And by January 2018, an investor purchased the one-millionth share of our OWN raise.

We never looked back. Fast-forward to October 2019, and we passed $100 million raised for startups on our platform. Two years later, we’ve increased that number by more than 6x to $650 million invested on StartEngine as of this October.

So, how to explain such rapid growth?

As I said, equity crowdfunding is still in its infancy. But in my experience, when something works, it works right away. And if all these statistics demonstrate one thing – it’s that this form of capital raise is not going away. In fact, it’s thriving.

Yes, it’s still hard for me to believe what we’ve accomplished. And while no one knows for sure, I suspect it will take a lot less than seven years to reach our next million users.

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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.

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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.

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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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