StartEngine, one of the largest investment crowdfunding platforms in the US, has increased its founder bounty to $10,000.
According to a recent email, if you know a founder that wants to raise growth capital – all you have to do is submit their contact information, and if they are “deemed eligible to launch,” you may collect $10,000.
StartEngine has long had a bounty program, and the platform reports that it has paid a whopping $800,000 to date in referral fees for “Fellow Scouts.”
It is interesting to note that not that long ago, StartEngine was paying less than half that amount or $4000.
As recently as this past May, StartEngine was promoting a bounty of $4000 for every successful referral. At that time, StartEngine shared that more than 21,000 Scouts had earned $700,000 – so in less than one month, it seems StartEngine has paid out $100,000 for founder bounties.
Recent reports indicate that online capital formation remains slow during a choppy economy and rising interest rates – with valuations declining. At the same time, investment crowdfunding appears to be more active than traditional VCs – at least anecdotally.
As the thesis goes, firms looking to raise growth capital may be more inclined to raise capital under a securities crowdfunding exemption like Reg CF, Reg A+, or Reg D 506c as opposed to shaking the VC money trees which have been hesitant to back companies until there is light at the end of the economic tunnel.
