StartEngine, a leading US investment crowdfunding platform, reports that its newest Reg A+ offering has been qualified by the Securities and Exchange Commission (SEC).
Reg A+ is a securities exemption that allows issuers to raise up to $50 million. An offering must be approved by the SEC prior to any securities being pitched to investors.
The most recent Offering Circular that was most likely qualified by the SEC is available here.
As was previously reported, StartEngine is seeking up to $41 million in the securities sale. The company is seeking to raise $40,000,000 from the sale of Common Stock and $1,000,000 from the sale of Preferred Stock.
StartEngine previously completed a Reg A+ offering in 2019 when it raised $8.3 million.
Since that funding round, StartEngine highlights the following changes to its platform:
- Established a broker-dealer StartEngine Primary LLC
- Formed a partnership with businessman and investor who is on CNBC’s Shark Tank Kevin O’Leary, aka “Mr. Wonderful”
- StartEngine notes that it has been named the 10th fastest-growing company in California in the Inc. 5000 Series list
The broker-dealer is a key step in providing a secondary marketplace as it is a pre-cursor for operating an “alternative trading system” (ATS).
The price per share of the Reg A+ offering has been set at $11.25 – a significant increase to last year’s offering where shares were sold to the public at a price of $7.50/each.
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