StartEngine, a leading US-based investment crowdfunding platform, is reporting that it raised $33.9 million during Q4 2022 under the Reg A+ (Regulation A) and Reg CF (Regulation Crowdfunding) exemptions. StartEngine added that this surpassed its two largest competitors.
According to StartEngine, Wefunder raised $23.9 million, and Republic raised $17.2 million – each under both Reg A+ and Reg CF.
For the entire industry, StartEngine reports that $123 million was raised, so StartEngine garnered over one-third of all funds raised.
For the entire year, StartEngine raised $175.8 million (Wefunder at $148.8M and Republic at $91.6M)
Under Reg CF, an issuer may raise up to $5 million from both accredited and non-accredited investors. Using Reg A+, Tier II, an issuer may raise up to $75 million from both accredited and non-accredited investors. An issuer using Reg A+ must have an offering document qualified by the Securities and Exchange Commission and, once completed, may choose to trade the securities. This has led to some describing the exemption as a “mini-IPO” type offering.
StartEngine did not incorporate Reg D 506c, an exemption where a company may raise an unlimited amount online but may only accept accredited investors.
StartEngine said this was the second year in a row that they “outpaced” their main competitors.
During Q4, these industry sectors raised the most money using StartEngine:
- Media, Entertainment & Publishing – $16.6M
- Real Estate & Construction – $14.1M
- Healthcare & Pharmaceuticals – $13.4M
StartEngine recently acquired SeedInvest, so its platform should get a boost during 2023 – once the purchase is approved.