StartEngine, a leading full-stack crowdfunding platform is in the first full week of a self crowdfunding round using Reg A+. StartEngine previously raised $5 million in 2018 using Reg A+.
The offer seeks up to $9,000,000 from the sale of Common Stock and $1,000,000 from the sale of Preferred Stock for a total of $10,000,000. Investors in preferred shares have a minimum hurdle of $200,000 and a price per share is $7.50. Common share investors have a minimum investment of $502.50. StartEngine is issuing shares at a pre-money valuation of $119 million. The Reg A+ Offering Circular provides additional information on the share sale.
StartEngine has raised over $80 million on its platform to date. Securities are being issued using Reg CF, Reg A+, and Reg D. They also have the ability to issue security tokens and the platform was the first to issue digital securities using Reg CF.
StartEngine reports annual revenue of $4.9 million in 2018, a growth rate of 140% versus year prior. Currently, 89 companies actively raising capital on the securities crowdfunding platform.
So what’s on the roadmap of interest?
StartEngine is pursuing both a broker-dealer license and an Alternative Trading System (ATS) license. This will allow the company to provide liquidity for investors in secondary transactions and move beyond primary issuance.
Additionally, StartEngine is reporting you may now invest up to $10,000 by using your credit card. Previously the amount was capped at $2000.
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