This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment
Established CEO: In just a few short years, our CEO Howard Marks has guided StartEngine to be the largest equity crowdfunding platform in terms of total funds raised. Howard previously co-founded video game giant Activision, which today has a multi-billion dollar market cap.
$400M raised: Companies have raised over $400M on StartEngine, $200M+ of which was raised in the past 12 months alone.
190% YoY growth: We generated $12.5M in revenues in 2020, representing 190% YoY growth compared to our 2019 revenues of $4.3M. And in the first six months of 2021, we did more revenue ($13.3M) than we did in all of 2020.
Trading platform: StartEngine has launched an alternative trading system (ATS) to trade startup investments, one of the first of its kind for Reg CF and Reg A offerings in the US.
20,000 StartEngine shareholders: We have already raised $30M+ for StartEngine itself from over 20,000 shareholders.
500K strong: Over half a million people have joined our community of investors.
Shark approved: Renowned businessman and investor Kevin O’Leary, aka “Mr. Wonderful”, is StartEngine’s Strategic Advisor, an investor, and a paid spokesperson.
Now You Can Invest Like Mr. Wonderful
Leading the Industry: $200M Raised in Last 12 Months
This graph is sourced from StartEngine’s records of funding commitments received across all offerings on the platform.
In just a few short years, our CEO Howard Marks has guided StartEngine to be an industry trailblazer and the largest equity crowdfunding platform in 2020 in terms of funds raised.
To help us meet demand, we are scaling our team. StartEngine is now more than 80 people strong, and we have doubled our team in the last 12 months. We are just getting started.
Providing Liquidity to Our Shareholders
Historically, there is no place to trade startup investments. To see a return on your investment, you’d have to wait until the company paid dividends, was acquired or if the company IPO’d and went public. Those processes could often take anywhere from 5 to 10 years, if ever.
We are changing that. Last year, we launched our investor trading marketplace StartEngine Secondary, so that users can not only invest in companies on StartEngine, but also trade with other investors.
With this marketplace, we’ve created one of the first trading platforms in the US for Regulation A+ and Regulation Crowdfunding offerings.
StartEngine itself was the first company to quote its shares on StartEngine Secondary, and since launch, over $1,478,978 worth of shares has been traded between 1,200 investors.
We believe our trading platform will unlock StartEngine’s full potential.
StartEngine’s valuation in our Regulation A+ offerings
March 2021: New Regulations to Accelerate Our Growth
On March 15th, 2021, new rule changes from the SEC went into effect that significantly change how the StartEngine platform operates. Those changes include:
These changes mean companies can raise more capital, and investors can invest more money. We believe those changes mean StartEngine can grow faster, and our growth in 2021 validates that claim.
In the first six months of 2021, we increased our revenues year-over-year by 146% to $13.36M, more revenue than we did in all of 2020. And we successfully transitioned from operating at a loss to producing operating income of $2.13M.
How StartEngine Makes Money
We make money when companies raise money. We charge companies a percentage of what they raise.
We take equity in StartEngine alumni, at the same terms as the investors on our platform.
We charge fees for providing companies with a range of services to help them onboard and launch their campaign.
We charge a selling fee on our trading platform StartEngine Secondary.
We sell the Owner’s Bonus as an annual subscription that gives unique perks to investors on our platform.
Meet Our Team
Before launching StartEngine, Howard co-founded video game giant Activision and turned the company into the multi billion market cap video game industry leader. Howard was also the Founder and CEO of Acclaim Games, a publisher of online games that was later sold and is part of The Walt Disney company. Howard is the Treasure of Los Angeles award recipient in 2015 and is a triple national of the United States, United Kingdom, and France.
Kevin founded SoftKey, a computer software company, that he led to a $4B exit. After the acquisition, Kevin eventually found himself on television, quickly becoming a sought-after host and personality on a range of shows – including Discovery’s Project Earth, CBC’s Dragons’ Den, and ABC’s Shark Tank. Kevin O’Leary is StartEngine’s Strategic Advisor, a StartEngine shareholder and a paid spokesperson to help bring awareness to equity crowdfunding and StartEngine's platform.
What's changed between your last offering and now?
We raised over $18.8M at a $221M valuation in our last Regulation A+ offering, which closed in October 2020. Since then, we launched our trading platform StartEngine Secondary, one of the first marketplaces of its kind in the US, and announced our 2020 growth. In 2020, we:
- Increased our revenue by 190% YoY
- Increased the amount raised on StartEngine by 236% YoY
- Increased the number of new investors by 256% YoY
- Increased the size of the StartEngine team by 154%
Last year accelerated our growth, and as of March 2021, new regulatory changes that allow companies to raise more and investors to invest more will accelerate our growth further.
In the first six months of 2021, we became a profitable company, successfully producing operating income of $2.13M.
We issued a forward 3 to 1 stock split prior to this offering. As a result, the share price in this offering is $13.50, and investors prior to this round now own three times as many shares. We believe this decision will improve liquidity for StartEngine shares on our secondary market.
The funds we raise in this round will help us tackle a few key initiatives in the coming months, including improving our secondary marketplace, launching a mobile app, hiring new team members, and bringing new alternative assets and investment opportunities to our community.
AN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC. THE SEC HAS QUALIFIED THAT OFFERING STATEMENT, WHICH ONLY MEANS THAT THE COMPANY MAY MAKE SALES OF THE SECURITIES DESCRIBED BY THE OFFERING STATEMENT. IT DOES NOT MEAN THAT THE SEC HAS APPROVED, PASSED UPON THE MERITS OR PASSED UPON THE ACCURACY OR COMPLETENESS OF THE INFORMATION IN THE OFFERING STATEMENT.
THE OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT CAN BE FOUND HERE.
THE OFFERING MATERIALS MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY’S MANAGEMENT. WHEN USED IN THE OFFERING MATERIALS, THE WORDS “ESTIMATE,” “PROJECT,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.
KEVIN O'LEARY IS A PAID SPOKESPERSON FOR STARTENGINE. READ THE 17-B DISCLOSURE HERE.
A COMPANY WHICH INTENDS TO APPLY TO LIST ITS SECURITIES ON STARTENGINE SECONDARY WILL BE SUBJECT TO CERTAIN REQUIREMENTS WHICH IT MAY OR MAY NOT BE ABLE TO SATISFY IN A TIMELY MANNER. EVEN IF A COMPANY IS QUALIFIED TO LIST ITS SECURITIES ON THE MARKET, THERE IS NO GUARANTEE THAT A DEMAND FOR THESE SECURITIES WILL EXIST. EVEN IF A COMPANY DOES MEET THE REQUIREMENTS FOR LISTING ITS SECURITIES, WE DO NOT KNOW THE EXTENT TO WHICH INVESTOR INTEREST WILL LEAD TO THE DEVELOPMENT AND MAINTENANCE OF A LIQUID TRADING MARKET. YOU SHOULD ASSUME THAT YOU MAY NOT BE ABLE TO LIQUIDATE YOUR INVESTMENT FOR SOME TIME OR BE ABLE TO PLEDGE THESE SHARES AS COLLATERAL.
FOR ANY SERIES OF STARTENGINE COLLECTIBLES FUND I LLC FOR WHICH THE OFFERING STATEMENT FOR THAT OFFERING HAS NOT YET BEEN QUALIFIED BY THE SEC:
NO MONEY OR OTHER CONSIDERATION IS BEING SOLICITED, AND IF SENT IN RESPONSE, WILL NOT BE ACCEPTED.
NO OFFER TO BUY THE SECURITIES CAN BE ACCEPTED AND NO PART OF THE PURCHASE PRICE CAN BE RECEIVED UNTIL THE OFFERING STATEMENT FILED BY THE COMPANY WITH THE SEC HAS BEEN QUALIFIED BY THE SEC. ANY SUCH OFFER MAY BE WITHDRAWN OR REVOKED, WITHOUT OBLIGATION OR COMMITMENT OF ANY KIND, AT ANY TIME BEFORE NOTICE OF ACCEPTANCE GIVEN AFTER THE DATE OF QUALIFICATION.
AN INDICATION OF INTEREST INVOLVES NO OBLIGATION OR COMMITMENT OF ANY KIND.
AN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC. YOU MAY OBTAIN A COPY OF THE PRELIMINARY OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT FROM HERE.