Equity crowdfunding lets startups and private businesses raise capital from the crowd, and it allows everyday people to invest for as little as $100. Everyone can be an investor, not just VCs and private equity firms.
On StartEngine, people can invest in startups that they believe in. Equity crowdfunding allows startups and private companies to raise capital from the crowd through the sale of securities like equity, debt, revenue share and more.
Anyone, regardless of wealth, can invest in private businesses, not just the ones trading on stock exchanges, and they can do so online.
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Invest in private businesses and early-growth startups.
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Equity crowdfunding was created when President Barack Obama signed the Jumpstart Our Business Startups Act (JOBS Act) in 2012, and the Act allows companies to raise money through a few different regulations:
LEGALIZED IN MAY 2016
Allows companies to raise up to $5M each year, every year.
LEGALIZED IN JUNE 2015
Allows companies to raise up to $75M each year, every year.
Read more about the differences between Regulation Crowdfunding and Regulation A+ here. To learn more about the growth of Regulation Crowdfunding, read national statistics in our quarterly StartEngine Index.
Anyone over 18 years old
can invest in companies on StartEngine.
Traditionally, angel investors, venture capitalists, and accredited investors could invest in private companies and often were the only ones with access to those opportunities.
Accredited investors are individuals with a networth of greater than $1M (excluding their primary residence) or an annual income exceeding $200K per year for two years ($300K if combined with a spouse). In other words, these opportunities were often limited to the wealthy.
Now, nearly anyone can invest in startups through equity crowdfunding. Investors have to be at least 18 years old, and StartEngine does not accept investment from Canadian and UK investors due to the securities laws in those countries. Otherwise, anyone can invest in companies raising capital on StartEngine.
There are nearly 6 million businesses in the US, and the majority have a difficult time accessing capital. With equity crowdfunding, there is a path to create more opportunity for both businesses and investors.
Entrepreneurs no longer needed venture capitalists to bring their ideas to life; they just needed other like-minded visionaries willing to take a chance on something novel.
Equity crowdfunding provides a unique opportunity for businesses to turn their customers into owners and create a more loyal user base ready to promote the business.
