StartEngine’s Gross Profit Grows 1.65X in Q2 2024 1
Now’s your chance to reserve shares in StartEngine, a leading equity crowdfunding with a community of over 1.8 million. 2 Join us and 45,000+ investors as we work to capitalize on this incredible growth.
Pst…when you reserve shares before we go live, you can earn up to 20% bonus share.
* NO MONEY OR OTHER CONSIDERATION IS BEING SOLICITED, AND IF SENT IN RESPONSE, WILL NOT BE ACCEPTED.NO OFFER TO BUY THE SECURITIES CAN BE ACCEPTED AND NO PART OF THE PURCHASE PRICE CAN BE RECEIVED UNTIL THE OFFERING STATEMENT FILED BY THE COMPANY WITH THE SEC HAS BEEN QUALIFIED BY THE SEC. ANY SUCH OFFER MAY BE WITHDRAWN OR REVOKED, WITHOUT OBLIGATION OR COMMITMENT OF ANY KIND, AT ANY TIME BEFORE NOTICE OF ACCEPTANCE GIVEN AFTER THE DATE OF QUALIFICATION.AN INDICATION OF INTEREST INVOLVES NO OBLIGATION OR COMMITMENT OF ANY KIND. You can view our offering circular HERE.
This Reg A+ offering is made available through StartEngine Crowdfunding, Inc. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.
Historical investments in StartEngine should not be construed as a guarantee of future growth and should not be seen as an indicator of future results.
Your One-Stop Shop for Private Market Investing
StartEngine is a leading crowdfunding platform for investing in companies at all stages — from emerging startups to series holding shares of well-known names like Discord. We’re empowering founders and investors alike.
*The underlying companies of StartEngine Private, including Discord, are not involved or participating, and shares of these companies are not being offered. See footnote 5 for additional details.
**Gross profit is the revenue minus the cost of goods sold, which differs from net profit, which is the income left after all expenses are deducted. See footnote 1 below and our most recent 10-Q for more details on expenses and net earnings.
10% Just for reserving shares with StartEngine today
10% When you sign up for a Venture Club membership and/or invest a certain amount
*See perks terms and conditions. Please note that you can also qualify for up to 20% bonus shares through other methods when the offering goes live, without needing to make a reservation at this time.
New Assets Under Management – SeedInvest
Last year, StartEngine acquired assets of a top competitor, SeedInvest, including access to a community that’s raised over $470 million. Combined with our own community, we have access to a prospective investor network that’s collectively committed $1.2 billion. 5
StartEngine’s Growth - Leaning In
We’re supercharging our growth with 11 new sales representatives in Q2, while doubling the number of companies who have signed contracts to raise capital on our platform in Q2 compared to the same period last year.*
*Signed contracts does not necessarily indicate offerings will launch.
*StartEngine Private offers membership interests in LLC series which own shares of these underlying companies. The companies above are not involved or participating, and shares of these companies are not being offered. See footnote 4 for additional details.
*The underlying companies of the Howard Marks AI Fund are not participating or involved in the offering. See footnote 4 for additional details.
From $0 → $4.9M Gross Profit1
In November, we launched StartEngine Private, an investing portal giving everyday accredited investors exposure to some of the most popular private venture-backed businesses — without the million dollar commitments. We typically earn margin on the sale of the underlying assets to the funds and also have the potential to earn 20% on the upside upon an exit. As a result, StartEngine Private’s gross profit increased $0→$4.9M for the new product in just nine months.
How StartEngine Makes Money1
Capital Raise Fees
Founders who raise on our platform pay a flat rate to launch, and pay a percentage based on success. We also get equity in their companies.
StartEngine Private
We typically earn margin on the sale of the underlying assets to the funds and also have the potential to earn 20% on the upside upon an exit.
Recurring Revenue
We receive $275 from members of Venture Club, a recurring subscription fee from investors who subscribe to earn bonus shares
Cap Table Management
We offer cap table management services to founders through StartEngine Secure on a recurring subscription basis.
Trading Fees
We collect a percentage fee on all transactions conducted on our offerings and marketplace.
Our Journey So Far
2016:
Equity crowdfunding becomes legal in the U.S., and StartEngine launches
April 2020:
Renowned investor Kevin O'Leary, aka "Mr. Wonderful," joins StartEngine as a strategic partner
Oct 2022:
The platform continues its upward trajectory, reaching 1 million users
Nov 2023:
StartEngine Private is launched, providing a new revenue stream for us
Aug 2017:
StartEngine reaches 100,000 users joining the platform
Dec 2021:
StartEngine surpasses $500,000,000 raised through its platform.
Nov 2022:
StartEngine acquires assets of competitor SeedInvest, expanding its reach and investor base
Today:
StartEngine’s Q2 2024 gross profits increased 1.65X when compared to Q2 20231 and reservations open for its fundraising campaign, aiming to continue its momentum and solidify position as a leader in the equity crowdfunding space
Meet Our CEO & Mr. Wonderful
Howard co-founded the video game giant Activision in the 90’s, which Microsoft later acquired in 2022 for $68 billion. Prior to StartEngine, Howard also founded and sold Acclaim Games, which was subsequently acquired by Disney.
“To be honest with you, I had wanted to compete with Howard out of the gate… but after seeing what he had built with the StartEngine team, it made a lot of sense to join him instead.”
Reserve Share in the Future of Startup Investing
Questions about this raise? Contact us
Perks Terms & Conditions
*If you are investing via a self-directed IRA, you cannot receive additional perks beyond bonus shares due to tax laws.
Claim up to 20% Bonus Shares
Investors in StartEngine can receive up to 20% bonus shares based on certain criteria.
- 10% if you reserved shares during the Test the Waters phase
- 10% if you are a member of the Venture club, if you are investing via a self-directed IRA, you cannot receive additional perks beyond bonus shares due to tax laws
- 5% if you invest between $3,000 and $4,999.99
- 10% if you invest between $5,000 and $24,999.99
- 20% if you invest $25,000 or more.
Bonus shares in this offering are stackable. The maximum amount of bonus shares that an investor can receive is 20%. For example, if an investor reserved shares in StartEngine and is a Venture Club member, they will receive 20% additional shares. If that person also invests over $25,000, they will still receive the maximum of 20% bonus shares. Bonus shares may not immediately appear on your investor dashboard, but will be issued prior to the offering closing.
DISCLAIMERS
1. Gross profit is the revenue of StartEngine Crowdfunding, Inc. (“the Company”) and its subsidiaries earns from sales after subtracting the cost of goods sold (“COGS”). This differs from net profit which is the income remaining after all expenses, including operating costs, taxes, and interest, are deducted from total revenue, providing a comprehensive measure of the Company's overall profitability. For full financials, see our latest statements filed on SEC EDGAR. Gross profit based on StartEngine’s unaudited financials: $5.72M for Q2 2024 compared to $3.46M for Q2 2023, since these are quarterly numbers and have not been audited, they may not include year-end adjustments necessary to make those financial statements comparable to audited results.
2. Count determined as number of unique email addresses in StartEngine’s database as of 08-27-2024. Unique email addresses do not necessarily mean unique individuals or active users.
3. The underlying companies held by StartEngine Private Funds LLC, and StartEngine Private LLC (together, “StartEngine Private”) are not participating or involved in the offering. The availability of company information does not indicate that the company has endorsed, supports or otherwise participates with StartEngine Private or any of its affiliates. StartEngine Crowdfunding LLC purchases shares from current and former employees, early investors, and advisors of the companies and sells the shares to StartEngine Private for each offering. When you make an investment in a company on StartEngine Private, you are purchasing an interest in a series of StartEngine Private Funds LLC or StartEngine Private LLC, each a Delaware limited liability company (together the “Series LLCs”), which were created to hold shares of privately held companies. An investor will not directly own or hold shares of the private company but instead will own member interests in a series of the Series LLCs, which either directly or indirectly, will hold shares in the company. There may not be a one-to-one economic parity on the value of the Series LLCs interests and the underlying shares.
4. In May 2023, StartEngine acquired assets of SeedInvest, including email lists for SeedInvest’s users, investors and founders. Go here for more details: https://www.startengine.com/blog/seedinvest
5. Includes $760M in funds raised as of May 9, 2023 via Reg. CF and Reg. A+ combined through StartEngine’s funding portal and broker dealer, StartEngine Capital, LLC and StartEngine Primary, LLC respectively, as well as StartEngine’s own raises. Also includes $470M in funds raised previously through offerings conducted on www.seedinvest.com outside of the StartEngine platform.
6. The underlying companies of the Howard Marks AI Fund, a series of StartEngine Private Funds LLC, and StartEngine Private LLC (together, “StartEngine Private”) are not participating or involved in the offering. The availability of company information does not indicate that the company has endorsed, supports or otherwise participates with StartEngine Private or any of its affiliates. StartEngine Crowdfunding LLC purchases shares from current and former employees, early investors, and advisors of the companies and sells the shares to StartEngine Private for each offering. When you make an investment in a company on StartEngine Private, you are purchasing an interest in a series of StartEngine Private Funds LLC or StartEngine Private LLC, each a Delaware limited liability company (together the “Series LLCs”), which were created to hold shares of privately held companies. An investor will not directly own or hold shares of the private company but instead will own member interests in a series of the Series LLCs, which either directly or indirectly, will hold shares in the company. There may not be a one-to-one economic parity on the value of the Series LLCs interests and the underlying shares.
7. Kevin O’Leary is a paid spokesperson for StartEngine. See his 17(b) disclosure, here.
THIS WEBPAGE 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.