StartEngine, a leading investment crowdfunding platform in the US, has just closed its self-crowdfunding round hitting its goal of $5 million backed by 3400+ investors. The Reg A+ offer was first filed in September of 2017 as the platform sought to raise growth capital.
In an interesting twist, StartEngine immediately announced an initial coin offering (ICO) seeking $10 million.
According to the campaign page, the ICO is seeking $10 million and is currently in a “test the waters” phase. By testing the water (or TTW), StartEngine may gauge investor support. TTW is allowable using the Reg A+ securities exemption.
This next funding round will aid in StartEngine’s ambition to launch a secondary market using blockchain. StartEngine is in the process of gaining an Alternative Trading System (ATS) license. A platform that applies for an ATS license must first become a FINRA regulated Broker Dealer.
According to StartEngine;
“we anticipate launching StartEngine Secondary as a marketplace to trade tokenized securities efficiently between buyers and sellers. Buyers can use Bitcoin or other cryptocurrencies to instantly purchase shares instead of waiting days for transactions to be completed.”
To date, StartEngine has helped to raise over $60 million and established a user base of 150,000 with 35,000 individuals having backed a campaign.
Co-founder and CEO Howard Marks explains his vision for StartEngine on the ICO offering page;
“I built StartEngine because I wanted to tear down the barriers that exist between entrepreneurs and capital. The JOBS Act brought about a tectonic shift in the industry. Now, with the recent advances in cryptocurrencies and blockchain technology, I believe it is possible to build a modern financial firm, one that works to the benefit of everyone. And I believe that StartEngine is the company to build it.”
StartEngine is not alone in its ambition to launch a marketplace to trade tokenized offerings thus providing a liquidity path for early stage investments. There is a handful of emerging companies that have recognized the efficiency of blockchain technology to manage the issuance and management of securities. Expect other platforms to follow a similar path.
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