Equity crowdfunding platform StartEngine officially launched their self-crowdfunding round this past Friday. The securities offer seeks a maximum funding goal of $5 million using Reg A+. Both accredited and non-accredited investors may participate in the funding round. StartEngine, one of the larger full stack (Reg D, Reg A+, Reg CF) crowdfunding platforms in the US, set a pre-money valuation of $65 million for the the company. Co-founded by CEO Howard Marks and Chairman of the Board Ron Miller, StartEngine has raised over $35 million for small companies since the platform was launched.
The offer was first revealed when a Reg A+ filing surfaced indicating the companies intent to raise growth capital via its own platform. The Offering Circular for the StartEngine offer is available here.
As of today, over $437,000 has been raised from 279 different investors so clearly the minimum hurdle will be surpassed.
Investors will be given the opportunity to purchase up to 1,000,000 shares of Common Stock in StartEnging. An additional 100,000 shares may be issued as “bonus shares” as part of the crowdfunding offer. There is a $500 investor minimum with a series of perks available to investors at various levels. The common shares hold voting rights but investors agree to cede these rights to the CEO of StartEngine until the company is either acquired or the company does an Initial Public Offering.
As for use of funds, StartEngine will use a good portion of any new capital to boost platform awareness via various promotional channels. StartEngine will also direct some of the money into new technology such as their new secondary transaction platform. StartEngine also announced it will be facilitating Initial Coin Offerings in Q4 of 2017. As part of the expansion into tokenized offerings, StartEngine is hosting an ICO Summit in November.
StartEngine is currently the second largest Reg CF issuer, the new crowdfunding exemption that allows small companies to raise up to $1.07 million via funding portals. Recently, StartEngine has experienced an acceleration in Reg CF offers listed on the platform.
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