StartEngine, one of the largest online investment platforms in the US, is considering its next self-crowdfunding round utilizing the Reg A+ securities exemption. Under the exemption, an issuer may raise up to $75 million from both Accredited and Non Accredited investors.
According to the platform, it is “testing the waters” (TTW), gauging investor interest prior to launching a full-blown securities offering. The platform already reports having raised over $80 million for the business.
As part of the offering, StartEngine is touting “StartEngine Private,” a segment of its business where it offers securities issued under Reg D. The platform claims that its gross profit has jumped from zero to $4.9 million since last November due to this new business line. Average investments are said to have increased as individuals average $16,416 per offering under Reg D securities and just $1424 under Reg CF and Reg A.
StartEngine is a full-stack platform enabling private firms to raise money under Reg A+ and Reg CF. Under Reg D, an issuer may raise an unlimited amount of funds but may only allow Accredited Investors to participate. StartEngine is also offering opportunities in established firms by acting as an intermediary for pre-IPO shares. A recent example is a listing for an investment in Chime, a popular Fintech neobank.
The details on any securities offering for StartEngine are not yet available, and the company may decide to delay an offering. The last funding round for StartEngine saw the company raise over $24 million at a pre-money valuation of $1.32 billion.
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