INTRODUCTION

What is StartEngine?

StartEngine launched the first-ever equity crowdfunding campaign in the US in 2015. Since then we’ve helped over 500 businesses raise capital.

We believe in creating access: that everyone should be able to invest in the ideas that could become the great businesses of tomorrow and that entrepreneurs should be able to raise money from the public and those that believe in them most.

We believe in creating access: that everyone should be able to invest in the ideas that could become the great businesses of tomorrow and that entrepreneurs should be able to raise money from the public and those that believe in them most.

Reasons to Reserve Shares

$300M raised

500+ campaigns have raised over $300M on StartEngine.

20,000+ StartEngine shareholders

We have already raised $30M+ for StartEngine itself from 20,000+ shareholders.

236% Year over Year Growth

Companies on StartEngine raised $147M in 2020 which was a year over year increase of 236%.

Established CEO

Howard Marks, Co-Founder of video game publisher Activision, which has a multi-billion dollar market cap, is our Co-Founder and CEO.

Trading platform

StartEngine has launched an alternative trading system (ATS) to trade startup investments, one of the first of its kind for Reg CF and Reg A offerings in the US.

Shark approved

Renowned businessman and investor Kevin O’Leary, aka “Mr. Wonderful”, is StartEngine’s Strategic Advisor, an investor, and a paid spokesperson.

StartEngine helps everyday people invest in startups and early growth companies.

We believe that everyone should be able to invest in the ideas that could become the great businesses of tomorrow and that entrepreneurs should be able to raise money from those that believe in them most.

TRACTION

StartEngine has a Thriving Network of Investors

Brian Lee

Co-founder of Legal Zoom, Honest Company, Shoe Dazzle, has invested in StartEngine

Our traction speaks for itself.

  • By the end of  2018
  • We raised $5,000,000
  • From 3,425 investors,
  • Launched 263 companies,
  • And doubled our revenue.
TRACTION

Amount Raised Over $150M+

Companies

350+
companies founded
51%
of companies return to raise capital more than once

Investors

100,000+
investors on StartEngine
48%
of  investments are from repeat investors in our community
Let’s grow together
GET UP TO 20% BONUS SHARES

By reserving your investment in StartEngine you will receive 10% bonus shares when completing your investment after the offering is qualified.

You can also receive an additional 10% bonus shares if you are a member of StartEngine's Owner's Bonus Program when you invest.

For example, if you purchase 100 shares of common stock, and you qualify for 20% bonus shares you will receive 20 bonus shares, and therefore you will receive 120 shares for the price of 100 shares.

The bonus is
10% for reserving shares
10% with Owner's bonus

2020 Year in Review

  • Our traction speaks for itself. By the end of 2020, we led the equity crowdfunding industry raising over $147,000,000 a year over year increase of 236%. In just a few short years, our CEO Howard Marks has guided StartEngine to be an industry trailblazer and the largest equity crowdfunding platform in 2020 in terms of funds raised. Here are a few more stats to illustrate our growth in 2020:

$147M

Raised

236%

Yearly Growth

97,667

New Investors
“We’re going to look back on this period as the start of the rise of equity crowdfunding, and I think it’s an industry that StartEngine is going to win.”
Kevin O'Leary
This testimonial may not be representative of the experience of other customers.  This testimonial is no guarantee of future performance or success.  This is a paid ad.
  • Optimizing the ProcessAs we increased activity on the platform, we simultaneously made structural changes to the company. We also established a broker-dealer subsidiary, StartEngine Primary LLC.
  • Business ResultsWe nearly doubled the amount raised by companies on our platform in 2019 (an 86% increase), which in turn nearly doubled our revenue from our core business, the fees we earn from the capital raised on our platform.
Business model

So how does StartEngine make money?

175,000+
INVESTORS
65%
of Investments on StartEngine are repeat investments.

Campaign Fee

We make money when companies successfully raise money. We Charge companies a percentage of what they raise, part of which we may take in equity.

Campaign Management Services

We charge fees for providing companies a range of services to help them onboard and launch their campaign, including marketing, building creative assets and advertising, as well as helping them manage their cap table afterwards.

Equity

We take a percentage of what companies raise on StartEngine in equity, at the same terms as the investors on our platform.

Trading Fees

We charge a seller’s fee on our trading platform StartEngine Secondary.

Owner’s Bonus

We sell the StartEngine Owner’s Bonus to investors as an annual subscription that gives investors unique perks on our platform.

Invest, and Trade, All on StartEngine

Startup investments are illiquid. Historically, there is no place to trade them. To see a return on your investment, you’d have to wait until the company paid dividends, was acquired or if the company IPO’d and went public. Those processes could take anywhere from 5 to 10 years.

We plan to change that. In October 2020, we launched our investor trading marketplace StartEngine Secondary, so that users can not only invest in companies on StartEngine, but also trade with other investors.

With this marketplace, we’ve created one of the first trading platforms in the US for Regulation A+ and Regulation Crowdfunding offerings.

We hope to solve the issue with the entire startup funding ecosystem by building a platform where:

1. Companies that need funding can raise capital.
2. Everyday people can make startup investments.
3. Investors can trade startup investments on a public market.
Leadership

Meet Our CEO

Howard Marks

Co-Founder of Activision
Chairman of Activision Studios
Founder & CEO of Acclaim Games
Treasure of Los Angeles Award Recipient 2015

Howard is an experienced entrepreneur and CEO with a history of building successful businesses. Before launching StartEngine, Howard co-founded Activision and was the Chairman of Activision Studios from 1991 until 1997. As a former Board Member and Executive Vice President of video game giant Activision, he and a partner took control in 1991 and turned the ailing company into the $37 billion market cap video game industry leader, selling millions of games.

Leadership

Mr.Wonderful

Kevin O'Leary

Founder of SoftKey
TV host and personality on shows such as ABC's Shark Tank
Founder of O'Leary Financial Group
Strategic Advisor at StartEngine

Kevin founded SoftKey, a computer software company, that he led to a $4B exit. After the acquisition, Kevin eventually found himself on television, quickly becoming a sought-after host and personality on a range of shows – including Discovery’s Project Earth, CBC’s Dragons’ Den, and ABC’s Shark Tank. Kevin O’Leary is StartEngine’s Strategic Advisor, a StartEngine shareholder and a paid spokesperson to help bring awareness to equity crowdfunding and StartEngine's platform.

Let’s grow together
RESERVE SHARES
NEW REGULATIONS

March 15th: New Regulations could Accelerate our Growth

On March 15th, 2021 we believe our growth could accelerate dramatically. On that date, new rule changes from the SEC will go into effect that significantly change how the StartEngine platform operates. Those changes include:

On March 15th, 2021 we believe our growth will accelerate dramatically. On that date, new rule changes from the SEC will go into effect that significantly change how the StartEngine platform operates. Those changes include:

Increasing the maximum annual limit of Reg A+ offerings from $50M to $75M

Removing investment limits for accredited investors and increasing the investment limits for non-accredited investors

These changes mean companies can raise more capital, and investors can invest more money. Those changes mean StartEngine could grow faster.
THE MARKET

The Future of Finance

  • We want to build the NASDAQ for private companies.
  • Historically, most investors couldn’t make a return on their startup investment until the company was acquired or if the company IPO’d and went public. That process could take anywhere from 5 to 10 years.
  • We have applied for an ATS (Alternative Trading System) license, and if approved by the SEC and FINRA, we will be able to launch a marketplace where every investor on StartEngine can buy and sell securities that were originally issued on our platform.
  • Investors will be able to buy and sell securities immediately in the case of Regulation A+ offerings and after one year in the case of Regulation Crowdfunding. No more waiting a decade or more just to have the opportunity to exit your investment.
PRESS

As Seen In

Frequently Asked Questions

What's changed between your last Regulation A+ offering and now?

We raised over $8.3M at a $119M valuation in our last Regulation A+ offering, which closed in March 2019. Our current Regulation A+ offering has a pre-money valuation of $190M, and our maximum funding goal for this round is $41M. The following factors influenced our decision to increase our valuation. First and foremost, we established our broker-dealer StartEngine Primary LLC to facilitate Regulation A+ offerings, and we got regulatory approval to launch our trading marketplace StartEngine Secondary. We had neither at the start of our last offering.

We also signed a new partnership agreement with Kevin O’Leary who will bring greater awareness to StartEngine and help us reach more companies and more investors. Last year, we also changed our fee structure and began taking equity in the companies that raise on our platform. We’ve also announced our plans to offer alternative investments on StartEngine, such as real estate. Between 2018 and 2019, we’ve also increased the amount invested on StartEngine 67% by YoY and the number of first time users 103.9% YoY.

How do I make money on my investment?

Traditionally, you would have to wait until StartEngine went public, declared a dividend, or was acquired by another business to receive a return on your investment (a process that can take many years if at all). These are both are possible in StartEngine’s future, but once we launch our investor trading marketplace, you may also 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), and some states do not permit trading of unregistered shares. For example, California won’t be able to participate unless we find a regulatory solution.

How are you different than your competitors?

We are not the only equity crowdfunding platform in the space, but we believe there are several important qualities that distinguish us from other platforms, including Wefunder, SeedInvest, and Republic. Some of those differentiators include:

  • Our CEO Howard Marks has a proven track record of building successful businesses with Activision.

  • We have renowned businessman Kevin O’Leary as our strategic advisor.

  • We have launched more companies than any of our competitors.

  • We are the 10th fastest growing private company in California, according to the Inc. 5000 Series list.

  • We plan to launch a trading platform for investors. Such a marketplace does not yet exist in the US.

  • We offer unique services, such as StartEngine Secure for capitalization table management and StartEngine Promote for digital marketing.

  • We are the only platform to use Regulation A+ to raise funding for itself, and we have over 9,000 shareholders to spread the word about our business.

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.

StartEngine Milestones

June 2015

  • StartEngine Launches

  • StartEngine launches its first offering Elio Motors, the first successful Regulation A+ offering that went on to raise $17M.

May 2016

  • Regulation Crowdfunding Begins

  • Regulation Crowdfunding becomes effective, creating a new category of equity crowdfunding for raises up to $1.07M.

August 2017

  • 100,000 Users!

  • The number of people who use StartEngine reaches 6 figures!

July 2019

  • Broker-Dealer

  • StartEngine establishes a broker-dealer and can provide brokerage services to the companies on the platform.

April 2020

  • Mr. Wonderful Joins StartEngine

  • Renowned businessman and investor Kevin O’Leary joins StartEngine as a Strategic Advisor and as an investor.

October 2020

  • StartEngine Raises an $18.8M Round

  • StartEngine closes its third Regulation A+ offering, raising $18.8M from over 12,000 investors.

October 2020

  • StartEngine Secondary Launches

  • StartEngine launches its investor trading marketplace where users can trade shares originally purchased via Regulation A+ and Regulation Crowdfunding.

March 2021

  • New Rules

  • The SEC increases the maximum companies can raise via Reg CF and Reg A+ to $5M and $75M respectively.