On StartEngine, you craft your investment pitch into a web page, raise capital from hundreds or even thousands of investors online, and fund the next phase of your growth with a bigger and stronger community behind you
You have two paths to choose from when raising capital on StartEngine:
Raise up to $1.07M each year, every year
Launch at potentially no upfront cost
Launch in 4-6 weeks
Raise up to $50M each year, every year
Launching costs $50,000-$75,000
Launch in 6 months*
*The timing to launch a Regulation A+ offering can vary widely, but generally speaking, it will take 30 days to compile the necessary documents, another 30 days to complete and submit disclosure to the SEC, and 90-120 days to get qualified by the SEC. More on this below.
Regardless of which regulation you choose, you will take the following steps in order to raise capital on StartEngine:
StartEngine reviews every company application internally to determine whether they meet our compliance requirements and are a good fit for equity crowdfunding. If it's a good match, we move forward!
Tell your story in your own words. Build and design your campaign page to attract investors. Our creative team will help you!
What's your valuation? What kind of security do you want to sell and how much of it? It's all up to you.
We request corporate documents like Articles of Incorporation and Board Resolutions to approve your fundraise.
You have 2 options:
Save on upfront cost and self-certify your financials to raise up to $107K
Under both regulations, you will need to disclose basic legal documents, such as Articles of Incorporation and Board Resolution, as well as information about the business and its key executives.
The business owner can personally sign off on the legal and financial paperwork if the total raise is under $107,000. To raise more than $107K, you will need to work with an outside CPA to verify your financials for the past two years (or since the business started).
You will need both legal counsel and independent auditors. The Form 1-A (the legal document for your raise) is a big undertaking, so launching for free is not an option. You will need a full financial audit.
*These forms are public and can be found in the SEC’s EDGAR database. This means anyone can look at your financials and the structure of your business.
Offerings are required to be live for at least 21 days. Generally speaking, companies raise for anywhere between 60-90 days, but they can continue raising for up to one year.
Under Regulation A, companies generally raise for anywhere between 6 months to a year, but they can continue raising for up to three years.
After you successfully raise capital through equity crowdfunding, you have a few ongoing requirements to your new investors:
Businesses are required to maintain their public disclosures and file an annual report with the SEC for as long as your new investors remain on your cap table.
You have to send two reports a year to your new investors: annual reports with audited financials, and semiannual reports with unaudited financials.