In this highly uncertain time, I wanted to update all of you on the steps StartEngine is taking to keep employees safe and grow our business when access to capital from traditional sources is severely limited. Venture capital companies are focusing on the triage of their portfolio companies, and angel investors are distracted. This is a black swan event that could have never been predicted only a few months ago. But here we are, and our feeling is that StartEngine is perfectly positioned to thrive and grow when this is all over.
Last Wednesday, March 11th, we closed our second Regulation A+ offering, and we received close to our maximum of $9M in commitments. We will update you when we have a final number. Our company has more than sufficient cash for our anticipated operations in the near future, and we had a profitable month in January.
We find ourselves in a different position with respect to this Coronavirus crisis than many companies. Despite the challenges, we are able to operate normally and maybe even grow and position ourselves for a stronger future. We are operating remotely for the time being with a tight strong team of committed people, and we feel we are ready to reach the next stage.
What is our plan? We are going to announce next week a significant agreement with a major celebrity in the world of finance who will be promoting our company across many channels. You may well know this person, and if you do, you will understand why we feel we can now reach a new level of growth.
We are still awaiting approval on our trading platform license. We feel it is imminent, but given the turmoil with everyone’s work environment, we still need to be patient.
As the access to capital is becoming less certain, StartEngine has seen weekly investments grow week over week in the last 4 weeks. Yes, it is possible investors become more reticent because of the high level of volatility in the traditional markets but given the average investment is $1,000 on our platform, we feel there are thousands, if not millions, of investors who are eager to invest when “others are fearful.”
I understand that this is an uncertain time and people are scared. I hope everyone takes care of themselves and their families’ health in this time. Please stay safe and be mindful of others.
I remain focused and feel privileged to be working with a world-class team to help make StartEngine the dominant player in equity crowdfunding.