
StartEngine
Description
StartEngine is a prominent equity crowdfunding platform based in Los Angeles, California, dedicated to democratizing access to private company investments. Founded with the mission to empower both entrepreneurs and individual investors, StartEngine enables startups and growth-stage businesses to raise capital directly from a broad base of non-accredited and accredited investors. This model provides an alternative to traditional venture capital, allowing companies to engage their communities and customers as shareholders.
The platform operates primarily under U.S. securities regulations such as Regulation Crowdfunding (Reg CF) and Regulation A (Reg A+), which permit companies to solicit investments from the general public. StartEngine facilitates the entire investment process, from company vetting and campaign creation to investor onboarding and fund transfer. Its user-friendly interface and educational resources aim to make private market investing accessible, often allowing individuals to invest with minimums as low as $100, significantly lowering the barrier to entry for startup equity.
StartEngine has achieved substantial scale within the alternative finance landscape. As of early 2024, the platform has facilitated the raising of over $900 million in capital for more than 1,000 companies, processing over 1.5 million individual investments. This demonstrates its significant role in connecting a diverse pool of investors with innovative businesses across various sectors. The company itself has also leveraged its own platform for fundraising, showcasing the viability of its model.
By providing a robust marketplace for private securities, StartEngine offers a unique value proposition. For companies, it's a powerful tool for community building and capital formation, while for investors, it presents opportunities to participate in the growth of early-stage companies that were traditionally exclusive to institutional investors or high-net-worth individuals. Its continuous growth and strategic moves, such as the acquisition of Indiegogo's equity crowdfunding business in 2023, solidify its position as a leader in the evolving crowdfunding industry.
Investor Profile
StartEngine has backed more than 216 startups, with 1 new investments in the last 12 months alone. The firm has led 19 rounds, about 9% of its total and boasts 5 exits across its portfolio.
Investment Focus Highlights
- Concentrates on Equity Crowdfunding, Seed, Series A rounds (top funding stages).
- Majority of deals are located in United States, Armenia, Canada.
- Strong thematic focus on Software, Health Care, E-Commerce.
- Typical check size: $100 – $100K.
Stage Focus
- Equity Crowdfunding (83%)
- Seed (12%)
- Series A (3%)
- Series Unknown (1%)
Country Focus
- United States (98%)
Industry Focus
- Software
- Health Care
- E-commerce
- Apps
- Manufacturing
- Fintech
- Food And Beverage
- Mobile
- Artificial Intelligence (Ai)
- Information Technology
Frequently Asked Questions
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