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StartEngine Crowdfunding, Inc

The Future of Investing Is Here

Minimum target reached
Closed on 03/11/20

$212,707

amount committed 


$10,000

target amount 

$855,000

max amount 

Regulation CF

exemption used 

$120,000,000

pre money valuation 

$195.00

min investment 

139

investors 


Security Type
Shares of Common Stock
$7.50 Per Share
$195.00 Min. Investment
Bonus

When you invest $1,000 or more in this offering, you will receive a 10% bonus on all participating Reg CF* offerings on StartEngine.com

 

* Issuers under Regulation CF choose to include this term; this bonus is not available for Regulation A+ or Regulation D offerings. This discount will be valid for one year from when StartEngine accepts and countersigns the subscription agreement, which could take some time after an investor completes the subscription agreement. StartEngine is under no obligation to accept any subscription agreement. So long as the investor holds the requisite number of shares (293 shares of Common Stock), this discount will be applied when such investor submits an investment commitment for a Regulation CF offering.

Own the Future of Finance

Become a StartEngine Investor

Offering Terms

  • $195.00 minimum investment

  • $1,000 to receive the StartEngine Owners Bonus (see below for information)

  • $7.50 per share.

  • Common shares with voting rights granted by proxy to CEO of the company

  • Valuation of $120M pre-money*

  • Limited to a total of 156,932 common shares


* Valuation reflects the 14,384,571 issued preferred and common and 1,445,000 granted options.

Company Description

Founded in 2014, StartEngine is an equity crowdfunding and security token offering platform that seeks to help entrepreneurs achieve their dreams by democratizing access to capital. This is our second public offering, for a maximum of $1.07 Million.  In June 2018, StartEngine closed its first Reg A+ round, raising nearly $5 Million from 3,425 investors.

Key Highlights

  • More than $100 Million raised for 300+ businesses, more than any other platform.

  • We have an active community with over 200,000 registered users.

  • Over $4.6 Million in revenue for 2018, demonstrating year-over-year growth of 140%.

The StartEngine Owners Bonus

When you invest $1,000 or more in this offering, you will receive a 10% bonus on all participating Reg CF*.In the past year, StartEngine Owners have reaped these benefits:


  • Over 225 companies participating companies to date.

  • The value of extra shares received is over $95,000.

  • Over 1,400 investments made with the StartEngine Owners Bonus.

  • Participating Owners received an average $200 in bonus shares.


You will have a monetary bonus for any shares you purchase on participating campaigns. For example, if you buy 100 shares at $1 / share in a company, you will receive 10 bonus shares, meaning you'll hold 110 shares for $100. This discount is valid for one year from the time you invest.


* Issuers under Regulation CF choose to include this term; this bonus is not available for Regulation A+ or Regulation D offerings. This discount will be valid for one year from when StartEngine accepts and countersigns the subscription agreement, which could take some time after an investor completes the subscription agreement. StartEngine is under no obligation to accept any subscription agreement. So long as the investor holds the requisite number of shares (293 shares of Common Stock), this discount will be applied when such investor submits an investment commitment for a Regulation CF offering.



We Are Innovators at Heart

We aspire to help entrepreneurs, because we share their risk-taking spirit and their willingness to be first. That's why StartEngine has:


  • Launched the first Regulation Crowdfunding raise.

  • Launched the first Security Token Offering.

  • Launched the first Regulation A+ raise.


Our investors' commitment to and belief in our mission fueled an incredible 2018. Over the course of the previous year, StartEngine hit milestones that would've seemed impossible back when we launched the first Regulation Crowdfunding offering in 2016:


  • Over 300 offerings launched, more than any other crowdfunding platform.

  • Nearly 17,000 people invested in an offering on StartEngine in 2018, with a majority of those investing in more than one.

  • $31 million was raised for entrepreneurs, small businesses and other job creators.


In 2019, StartEngine looks to the future. To truly achieve its mission, StartEngine must square the circle, bringing entrepreneurs and investors together. To do this, we seek to disrupt the ways in which entrepreneurs think about raising capital and the ways in which ordinary individuals think about investments.

The StartEngine Story

Our tale is one of inclusion, innovation and evolution. Beginning as Los Angeles' first tech accelerator, our founders grappled with an environment that often seemed at odds with small businesses and entrepreneurs without Silicon Valley pedigree. Although StartEngine found numerous successes in its early Silicon Beach days, the entrepreneurs we worked with found that breaking the mold didn't always mean breaking down barriers to capital.


Then, an amazing thing happened.


As key provisions of the JOBS Act, most especially equity crowdfunding, went into effect in 2016, new horizons for capital formation opened up. For the first time, anyone regardless of wealth could invest in private businesses. Entrepreneurs no longer needed venture capitalists to bring their ideas to life; they just needed other like-minded visionaries willing to take a chance on something novel.


StartEngine pivoted and sought to make the key fundraising innovations of the JOBS Act available to every aspiring entrepreneur. Capital, the very lifeforce of our economy, could be made available to all, regardless of race, sex, education, location, or any other metric by which traditional fundraising institutions divide the haves from the have nots. 

The StartEngine Team

More so than anything else, our previous round of funding allowed us to build a world-class team of crowdfunding champions. From business development to software development, every department at StartEngine has grown in 2018... 


The StartEngine team is led by Howard Marks, who is a serial entrepreneur and a co-founder of Activision and former Chairman of Activision Studios.


StartEngine's multiple departments all work in tandem to continually improve the crowdfunding experience for entrepreneurs and investors on our platform:


  • Services: This team forms the tip of the spear, guiding entrepreneurs through the process of creating their offerings and investors through the process of staking their claims. 

  • Business Development: This team works around the clock to find entrepreneurs in need of capital and to connect them with our platform and our 200,000-strong community. 

  • Marketing: Sure, our marketing department works to develop the StartEngine brand. But, they also do so much more. In addition to offering best practices to companies on our platform, they also find ways to make our services as easy, efficient and scalable as possible.

  • Review: Equity crowdfunding didn't just democratize access to capital; it also democratized access to a complex regulatory environment. Our Review team works with companies to ensure that their offerings are crafted in compliance with SEC and FINRA fundraising rules. 

  • Product Development: StartEngine is first and foremost a tech company, and our Product Development team is comprised of people who make things happen. From improvements to our onboarding environment to building our planned Alternative Trading System (ATS), they do it all.



How StartEngine Helps Entrepreneurs

Entrepreneurs will always build businesses, and StartEngine provides entrepreneurs with access to capital for those businesses.


While we can't change the nature of entrepreneurship; we can change the nature of raising capital.


StartEngine provides entrepreneurs with a holistic experience for conducting an equity crowdfunding offering: We provide:


  • The tools to construct an offering

  • Support for navigating the regulatory environment

  • Tiered services for entrepreneurs with varying needs

  • Access to one of the largest crowdfunding investor communities

  • The means to issue shares, including serving as a transfer agent

  • Post-launch and post-raise services

  • And more!


As we move into 2019, StartEngine plans to do even more to improve the fundraising experience for entrepreneurs. There are many exciting developments in store, and we look forward to sharing them with our investors and our broader community over the course of the year.



How StartEngine Helps Investors

Over the course of 2018, we've made improvements to our investor experience and begun numerous initiatives that connect people with opportunities:


  • Investor Dashboard: We've made improvements to our dashboard that allow StartEngine users to easily track their investments.

  • Dedicated Support: Our services team stands at the ready to assist any user when making an investment or with getting access to information they need.

  • Demo Day: We want everyone to do their due diligence when considering investments. That's why we offer a monthly opportunity for users and anyone else to hear pitches from and ask questions directly of companies raising on our platform.

  • Communications: We've multiplied the number of ways in which StartEngine users can learn of and look into investment opportunities available on our platform.


The biggest innovation for investors is yet to come, though. Still in development and subject to approval by the SEC and FINRA, StartEngine plans to launch an easy-to-use secondary market in 2019. This will provide ordinary investors with access to something that was previously hard to come by: liquidity for their investments.



StartEngine's Vision for the Future of Finance

Former SEC Chairman Christopher Cox and StartEngine CEO Howard Marks share a laugh at this past October's StartEngine Summit.

The StartEngine platform, through which we offer equity crowdfunding under Regulations CF, D and A, has grown significantly. On average, 20 campaigns were launched per month. To build upon this growth, we intend to launch StartEngine Primary, our planned broker-dealer, and StartEngine Secondary, our planned trading platform.

StartEngine Primary

When our wholly-owned subsidiary, StartEngine Primary LLC, is registered as a broker-dealer, we will be able to offer our customers a full range of investment banking services to help them raise capital with Regulation A and D.

StartEngine Secondary

When we are also  permitted to operate an ATS, we anticipate launching StartEngine Secondary as a marketplace to trade tokenized securities efficiently between buyers and sellers. Buyers can use Bitcoin or other cryptocurrencies to instantly purchase shares instead of waiting days for transactions to be completed.

LDGR

A patent-pending decentralized application on the Ethereum blockchain with the purpose of helping companies offer liquidity to their investors. LDGR can be deployed to create a tokenized digital security for every company using StartEngine Secondary, thereby enabling investors to trade their holdings on an open, transparent marketplace. 

Read the White Paper

StartEngine Secure

When an investor sells shares on StartEngine Secondary, StartEngine Secure, a registered transfer agent, will help complete the transaction. It will notify LDGR to publish the transaction on the blockchain. We also plan for StartEngine Secure to be able to integrate with other ATS platforms to process transfers outside of the StartEngine ecosystem in the future.

Meet Our Team

Howard Marks
CEO, Co-Founder
Howard Marks is one of our co-founders and has served as our CEO since January 1, 2017. From our founding in March 2014 until December 2016, Howard served as our Executive Chairman. Howard founded StartEngine, an unrelated entity, in November 2011 as a startup accelerator with the mission to help make Los Angeles a top tech entrepreneurial city. In March 2014, Howard and Ron Miller founded the company as an equity crowdfunding platform. Howard was the founder and CEO of Acclaim Games, a publisher of online games now part of The Walt Disney company. Before Acclaim, Howard was the Chairman of Activision Studios from 1991 until 1997. As a former Board Member and Executive Vice-President of video-game giant Activision, he and a partner took control in 1991 and turned the ailing company into the $20 billion market cap video game industry leader. As a games industry expert, Howard built one of the largest and most successful games studios in the industry, selling millions of games. Howard is the 2015 "Treasure of Los Angeles" recipient, awarded for his work to transform Los Angeles into a leading technology city. Howard is a member of Mayor Eric Garcetti's technology council. Howard has a Bachelor of Science in Computer Engineering from the University of Michigan. He is bilingual and is a triple national of the United States, United Kingdom, and France.
Ron Miller
Chairman, Co-Founder
Ron Miller is the executive chairman and cofounder of StartEngine. Ron served as our CEO and a director since our founding in March 2014 until December 2016. On January 1, 2017, Ron became our executive chairman. He is also currently the founder of the Disability Group Inc., and has served as its CEO since 2004. When Howard and Ron initially met in the fall of 2013, they recognized that the JOBS Act represented the greatest advancement for entrepreneurship in a generation. From direct experience as entrepreneurs, they recognized that the key to bringing new technologies and innovations to market required capital that is not readily available. As a serial start-up entrepreneur, Miller immediately went into action to advocate for SEC rulemaking to give life to the JOBS Act, raise the initial capital and built a leadership team to drive the sales and market plan to help StartEngine establish a leadership place in the market. Prior to StartEngine, Miller founded built and sold five companies through management buyouts, private equity, private investors, and public markets. He was also nominated as a four-time Inc.500/5000 award recipient and was Ernst & Young entrepreneur of the year award finalist. As the executive chairman, Miller brings his deep experience as a leader and strategist to the company.
Josh Amster
Vice President, Sales & Business Development
Josh Amster is VP of Sales & Business Development at StartEngine. Upon joining the team in early 2016, Josh has been bringing new business to the platform while also educating entrepreneurs on the advantages of raising capital from the crowd. Prior to that he served as an Account Executive for AEG and was responsible for selling corporate entertainment packages for LA LIVE properties, including the STAPLES Center. Josh fulfilled this role from 2013 until early 2016 when he then joined the StartEngine team. Josh received his Bachelor of Arts from Middlebury College, where he was a history major with a economics minor.
Johanna Cronin
CMO
Johanna Cronin is the Chief Marketing Officer at StartEngine. She joined Howard Marks and Ron Miller in 2014 as the company's first employee. She oversees all marketing initiatives, including lead generation, advertising and brand development. Prior to StartEngine, Johanna served as a Digital Marketing Analyst at Dex Media, managing and executing media spend for small businesses. Johanna is a native Angelino, and received her Bachelor of Arts from Northwestern University, where she was a psychology major with a Spanish minor.
Allen Jebsen
Vice President, Sales & Business Development
Allen Jebsen is VP of Sales & Business Development at StartEngine. With the team for three years, he has proven integral to StartEngine's consistent growth. Prior to that he served as an Account Executive for AEG. Prior to that he worked in Sales & Marketing at the Beverly Hills Sports Council. Allen received his Bachelor's degree in Business Administration and Management from the University of Southern California.

Updates


No updates, yet. Stay tuned.

Q&A


Unfortunately, this securities offering is closed. For questions, please email support@trucrowd.com. Thanks!

Fahad Desai
Fahad Desai - Investor3 years ago
Hi Howard - I heard your podcast on Growth Everywhere with Eric Siu and was totally amazed with your vision and the way you are moving ahead with this venture. I have few questions to ask you before I invest here:

1. I am an Indian. So can I also invest in this CF Campaign?
2. Is this the same investment opportunity which you spoke about with Neil Patel and Don Y. at Angels and Entrepreneurs Network? I am asking since I noticed 2 CF Campaigns - one is here and other is directly at your website which has a minimum investment amount as $502.50
3. Being an Indian, I do not hold any US trading account to buy/sell shares, so can I still get the benefits (money in my India account) when your firm start releasing return to the investors?

Awaiting your revert.
William Randolph Owens
William Randolph Owens - Investor3 years ago
I've invested 750.00 in Start Engine on this platform. If I invest an additional 250.00 to bring my total to 1K, will I qualify for the 1K min to get the 10% bonus on other campaigns? And will the 10% bonus also apply to future investments on the Start Engine portal?

Documents

Offering Statement and Form C Download

Other Disclosures

Read the Form C filed with the SEC for other important disclosures, like financial statements, Directors, Officers, shareholders with more than 20% of voting rights, and more.
Special Note Regarding Forward-Looking Statements
This offering contains forward-looking statements within the meaning of the federal securities laws. We caution investors that any forward-looking statements presented in this offering, or which management may make orally or in writing from time to time, are based on the Company’s beliefs and assumptions made by, and information currently available to, the Company. When used, the words “anticipate,” “believe,” “expect,” “intend,” “may,” “might,” “plan,” “estimate,” “project,” “should,” “will,” “would,” “result” and similar expressions, which do not relate solely to historical matters, are intended to identify forward-looking statements. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties and factors that are beyond the Company’s control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. While forward-looking statements reflect the Company’s good faith belief when made, they are not guarantees of future performance. The Company expressly disclaims any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this offering may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We undertake no obligation to revise or publically release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements.
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