StartEngine’s latest Regulation A+ (Reg A+) funding round has successfully raised more than $4.4 million from over 3,700 StartEngine investors. Founded in 2011, StartEngine claims to be the leader in Online Public Offerings (OPOs). StartEngine further explained that it helps individuals invest in private companies on a public platform.
“StartEngine helps everyday people invest and buy shares in startups and early growth companies. 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 most in them.”
StartEngine claims it launched the first-ever equity crowdfunding campaign in the U.S. in 2015. The company has applied for an Alternative Trading System (ATS) license and, once approved by the SEC and FINRA, it will be able to launch a marketplace where every investor may buy and sell securities that were originally issued on the StartEngine 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.”
StartEngine further stated that in the next ten years, it hopes to raise $10 billion for 10,000 different companies.
“Since Regulation Crowdfunding was enacted in May 16, 2016, nearly 1,700 entrepreneurs have used equity crowdfunding to fund their business and they have collectively raised over $200 million. While the data on Regulation A+ is less comprehensive, a report from 2017 noted that Regulation A+ offerings have raised $400 million since 2015. Every year, more companies are launching than the previous year, and more people are choosing to invest in those businesses. Equity crowdfunding is growing.”
Through the Reg A+ offering, StartEngine’s Common Stock (Non-voting) is $7.50 per share with a minimum investment being $502.50. StartEngine’s valuation is $119 million. In regards to what this investment round means for those who invested in an earlier funding round, StartEngine added:
“Our current offering does not impact your previous investment. The shares you purchased are still yours. StartEngine’s valuation increased to $119 million in this offering, and the price per share is now $7.50. If you invested in our previous Regulation A+ offering at $5 per share, this means that your shares are now worth 50% more on paper.”
The new funding round is set to close later this winter.
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