StartEngine is in live offering mode and is actively accepting Title IV investments.
$502.50 minimum investment

StartEngine

The future of investing is here.

Large OPO
Los Angeles, CA
Financial Services
Accepting International Investment
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Investor Snapshot

About StartEngine

Founded in 2014, StartEngine is the largest equity crowdfunding platform in the US. Our mission is to help entrepreneurs achieve their dreams by democratizing access to capital. We have launched more Reg CF offerings than any other platform and have successfully funded 250+ companies. In June 2018, StartEngine closed its first Reg A round, raising nearly $5 million from 3,425 investors. Investors in StartEngine can earn an owner's bonus and receive a 10% bonus in shares when investing on our platform (see "The StartEngine Owner's Bonus" below for more details).


View our Offering Circular.

StartEngine Highlights

  • $4.9M+ in revenue for 2018, demonstrating year over year growth of 140%*
  • $80M+ invested through our platform
  • 180,000+ registered users
  • 22% of investors participate in more than one offering
  • The average investment amount on StartEngine is $1,300

*StartEngine's 2018 revenue has not yet been audited and is subject to change

Offering Type

Common Stock

Price Per Share

$7.50

Minimum Investment

$502.50

Valuation

$119M**

** Valuation reflects the 14,337,698 preferred and common shares (which includes all shares currently issued as well as estimates of shares that the company anticipates selling through a private placement and a Regulation CF offering) and 1,520,000 granted options.

Product / Service

We are an equity crowdfunding platform, with a planned expansion to become a broker-dealer and Alternative Trading System offering a secondary market where investors can trade their securities.

Ownership Structure

Founders (common and preferred): 42%

Employee Option Pool: 9%

Preferred Seed Round: 43%

Reg A+ common shares: 6%

Liquidity

Once we become a registered Alternative Trading System, the shares you purchase in StartEngine will be immediately tradeable (though we cannot predict when this will happen or how much market interest there will be).

Why I Invested in StartEngine

"StartEngine is on the cutting edge of capital democratization. I invested in StartEngine because of the vision and integrity of its founder. My faith in StartEngine has been justified as it has catapulted to the forefront of online equity investment. I am confident that the early success of StartEngine will continue into the future." - Stephen Drimmer, CEO & Chairman of the Board, SkyBell


"We proudly invested in StartEngine because of our trust in their proven leadership team. Since our investment four years ago, we've closely followed StartEngine's success. They continue to innovate faster than the competition and remain a pioneer in the growing sector." - Greg Klein, Co-Founder & Managing Partner, Tartuvall Klein Capital


"StartEngine is the leading product in this space and is instrumental in giving startups with limited resources a means to get funded." - Robert Leff, Director, Forefront Telecare

In the Press

New Crowdfunding Rules Let the Small Fry Swim with Sharks
May 14, 2016

If you’ve always dreamed of being Mr. Wonderful from “Shark Tank,” now is your chance.

Is This the Proposal That Can Save Crowdfunding?
June 1, 2016

These are not risquée fly-by-night enterprises; they’re part of the crop of startups that have joined StartEngine, one of the first approved equity crowdfunding portals. Thanks to Title III of the Jumpstart Our Business Startups (JOBS) Act, which went into effect in mid-May, they can now raise money

Equity Crowdfunding Platforms Go Live, One Deal at a Time
May 16, 2016

Anybody with a little bit of pocket money to invest could log onto StartEngine and buy shares in the first U.S. companies seeking to raise money under Title III of the Jobs Act.

Today's Best Crowdfunding Platforms — By the Numbers
June 9, 2018

Of the nearly 1,000 companies that have registered to raise money online, 50 percent chose to register on either StartEngine or Wefunder. And, according to the data, it is a tight race, with StartEngine leading.

Equity Crowdfunding Platform StartEngine Now Accepts Bitcoin
July 21, 2018

StartEngine, a U.S. based equity crowdfunding platform, has announced that it has started accepting investment contributions in bitcoin.

The Next Generation of Companies Will Actually Have to Follow the Rules
March 22, 2018

Each company named above hopes to take advantage of crowdfunding rules that steam form the Jumpstart Our Business Startup Act, which Barack Obama signed in 2012.

Overstock: $250 Million tZERO Offering Under SEC Review
March 1, 2018

tZERO transitions its offering to StartEngine's platform.

Private Money Now Rules Silicon Valley, So Where Does That Leave Wall Street?
September 20, 2018

StartEngine's CEO Howard Marks goes on NPR's Marketplace to discuss equity crowdfunding.

Reg CF Dips in November Following Strong October
December 8, 2018

Crowdfund Insider analyzes the monthly StartEngine Index.

Equity Crowdfunding: A Primer
December 4, 2018

Equity crowdfunding gives startups an opportunity to raise more funds, and it gives the public an opportunity to invest in a startup's passion project or area of interest with little to no hassle.

3 Unique Ways Small Businesses Can Increase Cash Flow
July 10, 2018

One of the ways businesses can increase cash flow is by leveraging equity crowdfunding platforms like StartEngine.

Companies Can Raise Up to $50 Million Now Taking Advantage of 2015 SEC Regulations
November 24, 2018

Here's how companies are leveraging the JOBS Act on platforms like StartEngine.

For Regulation Crowdfunding, a Glass Half Full
May 16, 2018

LocaVesting takes a look at the StartEngine Index.

"Equity-based crowdfunding startups like StartEngine are taking advantage of the passage of the JOBS Act to help startups get real money in the door. That real money comes from real people, not just the elite at Sequoia or Kleiner-Perkins." - Melanie Curtin, Inc

The Problem With Raising Capital Today

There are nearly 6 million businesses in the US, yet the majority of these companies have a difficult time accessing capital, whether through public markets or venture capital. Furthermore, from the investor's perspective, the average individual has limited opportunities to invest in those businesses because most are private companies. Opportunities to invest in private business are often limited to wealthy accredited investors.


At StartEngine, we've witnessed the difficulty of accessing capital firsthand. Beginning as a tech accelerator in Los Angeles, our founders grappled with an environment that often seemed at odds with small businesses. Although StartEngine found numerous successes, the entrepreneurs we worked with found that breaking the mold didn't always mean breaking down barriers to capital: they had trouble raising more money after they graduated our program.


The US small business economy is one of the most robust in the world, but it is still a difficult market for entrepreneurs to navigate.

StartEngine's mission is to help entrepreneurs achieve their dreams.

StartEngine's Solution

With the passage of the JOBS Act in 2012, suddenly there was a path to create more opportunity for both entrepreneurs and investors. For the first time, anyone, regardless of wealth, could invest in private businesses and buy shares of stock, debt, revenue share, and more. 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.


We imagined a platform that could help companies raise millions of dollars from thousands of people, and those people, in turn, could buy and sell those shares long after the initial raise was complete. We imagined a liquid market for private shares.


We imagined StartEngine.

CEOs Explain...

Why Raising Money Is Hard

What It's Like to Find Investors in the Crowd

Why They Chose StartEngine

Our Business Model

Regulation CF

StartEngine charges 7-12% of total capital raised for Regulation Crowdfunding offerings. This amount is charged to the company raising capital and varies due to the method of investment (international and credit card investments are charged more).

Regulation A

StartEngine charges companies either $50/unique investor + warrants or a $20,000/month + warrants hosting fee for all Regulation A offerings.

Full Service Support

StartEngine charges a fee to those who elect to have full on-boarding, consulting, and creative services.

Investor Management

StartEngine charges a fee to companies who wish to enroll in our investor management system, StartEngine Secure.

The Journey So Far

We aspire to help entrepreneurs because we share their risk-taking spirit and their willingness to be first. That's why StartEngine has:


  • Launched the first Regulation Crowdfunding raise.

  • Launched the first Reg CF Digital Security Offering.

  • Launched the first Regulation A raise.

Our investors' belief in StartEngine's mission fueled an incredible 2018. Over the course of the previous year, StartEngine hit milestones that would've seemed impossible back when we launched the first Regulation Crowdfunding offering in 2016. In 2018:


  • Over 250 offerings launched on StartEngine, more than any other crowdfunding platform.

  • Nearly 17,000 people invested in an offering on StartEngine.

  • Companies raised over $31 million on StartEngine.

Our Vision for the Future of Finance

The StartEngine platform, through which we offer equity crowdfunding under Regulations CF, D and A, has grown significantly. On average, 20 campaigns were launched per month last year. To build upon this growth, we intend to launch StartEngine Primary, our planned broker-dealer, and StartEngine Secondary, our planned trading platform.

StartEngine Primary

When our wholly-owned subsidiary, StartEngine Primary LLC, is registered as a broker-dealer, we will be able to offer our customers all the brokerage services that customers need to raise capital through Regulations A and D.

StartEngine Secondary

When we are also permitted to operate an Alternative Trading System (ATS), we anticipate launching StartEngine Secondary as a marketplace to trade securities efficiently between buyers and sellers.

StartEngine Cash Account

Through our banking partner Prime Trust (a Nevada Trust Company), StartEngine investors will be able to open custodial accounts on StartEngine's platform. This will allow investors to instantly purchase and sell shares instead of waiting days for transactions to be completed.

StartEngine Secure

When an investor sells shares on StartEngine Secondary, StartEngine Secure, a registered transfer agent, will help record the transaction. We also plan for StartEngine Secure to be able to integrate with other ATS platforms to process transfers outside of the StartEngine ecosystem in the future.

The StartEngine Owner's Bonus

When you invest $1,000 or more in this offering, or are investing for the second or third time in StartEngine, you will receive a 10% bonus on all participating Reg CF offerings on StartEngine within a 24-hour window of their campaign launches. In the past year, StartEngine Owners have reaped these benefits:


  • Over 225 companies participated to date.

  • Over 1,400 investments were made with the StartEngine Owner's Bonus.

You will have a bonus for any shares you purchase on participating campaigns. For example, if you buy 100 shares at $1 per share in a company, you will receive 10 bonus shares, meaning you'll hold 110 shares for $100. This bonus is valid for one year from the time you invest.

Issuers under Regulation CF choose to include this term; this bonus is not available for Regulation A or Regulation D offerings. This bonus will be valid for one year from when StartEngine accepts and countersigns the subscription agreement, which could take some time after an investor completes the subscription agreement. StartEngine is under no obligation to accept any subscription agreement. So long as the investor holds the requisite number of shares (134 shares for new StartEngine investors in this offering, or 67 shares for previous investors who invested in this offering), this bonus will be applied when such investor submits an investment commitment for a Regulation CF offering. The company reserves the right to discontinue this incentive if required for regulatory purposes. Investors are only entitled to one owner's bonus (meaning the total bonus is 10% regardless if you have invested in our previous offerings).

StartEngine's Milestones

A Letter From The CEO

Dear Investor,

Fostering small business is the backbone of the US economy, and the very root of that support lies with capital. All businesses need funding. As an entrepreneur of 35 years, it's something I understand acutely.


The problem is that most businesses do not have access to capital and the means to grow. When StartEngine began as a tech accelerator in Los Angeles, I invested in 60 businesses and witnessed how difficult the road to funding can be.


Many great entrepreneurs with unusual ideas couldn't secure capital because they didn't fit into the particular vision and growth standards set by venture capitalists.


At StartEngine, we are building a system to bypass all of that.


We believe that any entrepreneur should be able to have opportunities to raise capital, and we believe that the wisdom of the crowd can dictate which offerings are good investment opportunities and which businesses ultimately receive funding.


If you believe in making investments in early-stage promising companies, leveling the playing field, and creating more economic opportunities for everyone, I invite you to join our mission and invest in StartEngine.


Sincerely,

Howard Marks

CEO, StartEngine

FAQ

How do you justify the increase in StartEngine's valuation within a single year?


The share price of this offering is 50% higher than our previous Regulation A offering last year. Our valuation is established by the company and is based on the fact that our revenue increased from approximately $2M to $4.95M in one year. We have also taken into account the potential offered by our business expansion plans.


How do I make money on my investment?


Traditionally, you would have to wait until StartEngine went public or the company was acquired by another business to receive a return on your investment (a process that took anywhere between 5-10 years), but once we are approved to operate an ATS, you will be able to sell your shares on StartEngine's website to other investors by posting the price per share you are willing to sell at, as well as how many shares you're selling, and see if there are any takers on the market. However, having a platform to sell your securities does not guarantee that there will be any purchasers for those securities at your desired price (or at any price).


What will the money be used for?


Investments made through this offering will go towards funding marketing StartEngine's platform to increase our brand awareness, building out our platform to make it easier to use for both companies and investors, and hiring top talent to grow our team while providing excellent customer service.


What is your growth plan?


Our priority in 2019 is getting registered as a broker-dealer and ATS (Alternative Trading System). Once registered, we will launch StartEngine Secondary, our planned trading platform, where investors can buy and sell shares that were originally issued by companies raising capital on StartEngine. StartEngine Secondary will use StartEngine Secure, our registered transfer agent. It is our intention that StartEngine Secure will allow StartEngine Secondary to function with the speed and efficiency expected by today's investors. The full implementation of StartEngine Secondary, though, is ultimately dependent upon the SEC's and FINRA's approval of StartEngine as a registered broker-dealer and an ATS.


Who are your competitors?


Our competitors include Wefunder, SeedInvest, and Republic, all three of which are other FINRA-regulated funding portals and/or broker-dealers. However, we believe we have the following strengths:


  • We are first-movers to market and launched offerings in both Regulation A and Regulation Crowdfunding before our competitors.
  • We are the only platform to put on our clients' shoes: we have also used public equity crowdfunding for ourselves.
  • We allow rolling disbursements, meaning companies can receive funds raised while the campaign is still on-going.
  • We offer internal marketing services, StartEngine Promote, that help our companies raise capital by creating their marketing campaigns.
  • We have increased the percentage of investors who invest in more than one offering from 4% to 22% in 2 years.
  • We offer StartEngine Secure, which provides cap table management and communication tools to help companies manage their investors after closing their offering.
  • As mentioned in the previous question, we are also working to become registered to operate an ATS, which would give our investor community an opportunity for liquidity.


I invested in StartEngine in an earlier funding round. What does this offering mean for my investment?


Our current offering does not impact your previous investment. The shares you purchased are still yours. There are just now more shares out there, meaning you now own a smaller percentage of StartEngine as a whole than you did before (and this is true for all StartEngine shareholders, including the founders). This is a process called dilution, which is normal for a growing startup. If a company is doing well, its valuation increases in future funding rounds, so that the value of individual shares stays the same or even increases. If you invested in our last Regulation A offering, you invested at $5 per share. While your shares are diluted, you paid less for them than investors in the current round.


What are the risks?


A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. 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. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority.


The company is subject to all the same risks that all companies in its business, and all companies in the economy, are exposed to. These include risks relating to economic downturns, political and economic events and technological developments (such as hacking and the ability to prevent hacking). Additionally, early-stage companies are inherently more risky than more developed companies. You should consider general risks as well as specific risks when deciding whether to invest.  For specific risks related to the Company, its Business, its Financial Condition, and the planned Offering, please read our Offering Circular.

AN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC. THE SEC HAS QUALIFIED THAT OFFERING STATEMENT, WHICH ONLY MEANS THAT THE COMPANY MAY MAKE SALES OF THE SECURITIES DESCRIBED BY THE OFFERING STATEMENT. IT DOES NOT MEAN THAT THE SEC HAS APPROVED, PASSED UPON THE MERITS OR PASSED UPON THE ACCURACY OR COMPLETENESS OF THE INFORMATION IN THE OFFERING STATEMENT.

THE OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT CAN BE FOUND HERE.

THE OFFERING MATERIALS MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY.  THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY’S MANAGEMENT.  WHEN USED IN THE OFFERING MATERIALS, THE WORDS “ESTIMATE,” “PROJECT,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS.  INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE.  THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.

Updates

A Successful Summit

4 days ago

On April 12th, we hosted the StartEngine Founder’s Summit, an all-day event for entrepreneurs to learn how to use equity crowdfunding for their business. We had over 150 entrepreneurs attend the event, including 40 StartEngine customers! We are proud to say the day was a success. Check out some of the pictures from Founder’s Summit below:





StartEngine's CEO Interviewed on Cheddar

7 days ago

This week, StartEngine co-founder & CEO Howard Marks did an interview on Cheddar to discuss the difficulties of raising capital and how StartEngine makes fundraising easier for entrepreneurs by providing them access to the crowd through equity crowdfunding.

In his words, “the difference with our platform and what you see elsewhere, like venture capitalists for example...is [that our platform] is open to everyone. You have a main street investor who is looking for an investment opportunity directly into a company, and we provide that.”

Touching on his background in the gaming industry with Activision and Acclaim, Howard said, “I look at the world of finance like a game business. I don’t look at it from a financial perspective where you have all of these hurdles…[and] regulation. I look at it as an opportunity to change how things work.”

Watch his conversation with Cheddar’s anchor Alyssa Julya Smith in full at this link: https://cheddar.com/media/startengine-ceo-on-how-platform-is-democratizing-access-to-capital

Launching Our Second Regulation A Campaign

17 days ago

I am thrilled that our second Regulation A offering has been qualified by the SEC. Last year, we raised $5M from nearly 3,500 investors in our first Regulation A offering. In the first few weeks of this second campaign, we’ve seen a lot of momentum already, and we hope to have thousands of new investors join the ranks of StartEngine Owners.

In the last few weeks, we’ve had a few exciting developments at StartEngine:


  1. We recently increased the maximum investment limit for credit cards to $10,000 on StartEngine’s platform, giving investors greater flexibility in how they invest in companies.

  2. In March, StartEngine achieved a major funding milestone. Companies on our platform have now raised more than $90M to date through StartEngine.

At StartEngine, we feel grateful because we are able to help so many entrepreneurs achieve their dreams. It is the fuel we need to keep going. I just got off the phone with an entrepreneur who raised $1M with us recently. They were excited about their successful raise and kept talking about their new community of investors and the future plans for the company.

With this offering, we are continuing our popular StartEngine Owner’s Bonus program, in which those who invest at least $1,000 in StartEngine, or are investing in StartEngine for a second or third time, will receive for one year a 10% bonus in shares in all participating Regulation Crowdfunding offerings when investing during the first 24 hours of new campaigns.

As we continue our journey together, I hope you will consider making an investment in StartEngine.


Best,

Howard

Please see our offering circular for additional information. 

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