King of the Hill: StartEngine Claims it Raised More Under Reg CF in Q2 Than Any Other Funding Portal

StartEngine claims that it raised more money under Reg CF than any other platform during Q2.

Reg CF (or Regulation Crowdfunding) enables a company to raise up to $1.07 million from both accredited or non-accredited investors. The offering must be hosted on a FINRA regulated funding portal or by a broker-dealer. StartEngine happens to be both.

StartEngine reports that it raised $17 million during the second quarter with 15 companies raising the max amount the platform.

Overall, StartEngine states that $33 million was raised using Reg CF in Q1. During Q2, $48.2 million was raised – an increase over over 44%. Of course, this happened during the height of the COVID-19 pandemic.

Additionally, StartEngine says that more mature companies are looking to utilize the securities exemption – something that is good for the overall market.

StartEngine is one of 55 FINRA regulated funding portals. Some of these funding portals are inactive or have had very little activity. There are several relatively new ones that are just gaining traction. StartEngine is one of a handful of platforms that have been active for several years now that are dominating the sector.

There is an expectation that the Reg CF funding cap may be increased to $5 million at some point in the coming 12 months. If that occurs, sector activity should experience a significant boost.

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