What is StartEngine?
Start Engine is a global platform for companies to raise funds and in turn a place for everyday investors to invest in companies or businesses they believe in. It is a form of crowdfunding. It was co-founded by Howard Marks, who also founded Activision the video game giant.
They have raised over $400m from 500 companies since 2016, making it one of the largest business crowdfunding sites on the internet to date.
Their company mission is:
“Help Entrepreneurs Achieve Their Dreams”
Their mission is to help other entrepreneurs and founders raise the funds they need to grow and achieve their dreams.
They focus on helping entrepreneurs who need start-up funding to get started and also those who are more advanced who need additional funding to fund future stages.
There are two parts to the funding including:
- Regulation Crowdfunding — to raise up to $5m — little to no start-up cost
- Regulation A+ — to raise up to $75m — $50,000-$75,000 start-up cost
How does Crowdfunding Work?
It starts with company owners developing a business idea that they want to explore. Some examples of projects may include health, technology, food, and drinks, there is a wide range of categories they can choose from.
After they establish what they want to raise money for, then they can publish their campaign to the website and set the parameters, like how much capital they want to raise and the minimum investment per investor. Also, they can set the share price as well (based on the company’s size and valuation).
Investors then can come along and research which project they want to invest in and then invest into the project of their choosing directly on the website platform. It is all in one convenient spot.
It is a win-win for both parties. The company owners get funding to fund their business and the investor gets a piece of equity that will be worth something in the future.