StartEngine is an equity crowdfunding service that facilitates connections between startup businesses online with non-accredited investors.
The platform capitalizes on a provision in the 2012 Jumpstart Our Businesses (JOBS) Act, which enables non-accredited investors to purchase equity in private companies that are functioning in their early stages.
In this article, we’ll be going through:
- The Founding of StartEngine & Core Values
- The Concept Behind Startengine
- Success Stories on StartEngine
- Additional Resources Surrounding Equity Crowdfunding
Let’s dive right in!
Founding of StartEngine & Core Values
The Startengine equity crowdfunding platform was founded in 2015 by Howard Marks. Business tycoon Kevin O’Leary has also played a key role in the growth and expansion of the platform, serving as a strategic advisor.
Since the platform’s inception:
- $300+ million dollars have been raised
- 400,000 prospective investors have participated
- 500+ offerings have been funded
According to the StartEngine website, their company mission is to “help other entrepreneurs and founders just like us raise the funds they need to grow and achieve their dreams.”
They also have six core values, which include:
- Own the Mission
- Exceed expectations
- Be a Team Player
- Stay Curious
- Do the Right Thing
- Care About Others
You can read more about StartEngine’s strategic approach and their company missions here.
The Concept Behind StartEngine
Via the StartEngine platform, non-accredited investors are presented with an opportunity to invest as little as $100 in startups that they believe have a bright future.
In exchange for an investment, investors are given a stake — also known as equity — in the company’s future profits.
In essence, StartEngine serves as a Kickstarter for investments.
However, on a platform like Kickstarter or Indiegogo, backers receive a reward for their monetary support, usually in the form of a product. The StartEngine model takes a different approach — with return on investment (ROI) being the real prize.
StartEngine poses a much greater inherent risk than traditional crowdfunding platforms. Investors have absolutely no guarantee of a return on their investment.
If a startup a given investor chooses to support performs well, they have a chance to make big money by getting in on the ground floor. But if the startup fails (as most of them are prone to do), the investor loses all of their money.
Any investment strategy poses an element of risk. But in the case of StartEngine and other equity crowdfunding platforms, investments are even riskier.
Only about 10% of these businesses succeed. Investors are encouraged to plan for a buy-and-hold strategy that accrues over a long time (several years) to see returns.
The good news is there have been many wildly successful startups that have gone on to acquire huge economic gains and pay impressive dividends.
StartEngine Success Stories
Since StartEngine’s launch in 2015, more than 350 companies have raised $175 million or more for their startups. Let’s take a look at some examples that are performing well in 2021.
KnightScope
Amount Raised: $20 million
Previously Crowdfunded: $43.5 million
Investors: 10,102
Valuation: $447 million
Price per Share: $10
Minimum Investment: $500
Knightscope is a Silicon Valley company that builds autonomous security robots that patrol the places you live, study, work, and visit.
LiquidPiston
Amount Raised: $10.2 million
Previously crowdfunded: $3.3 million
Investors: 5,146
Valuation: $69.1 million
Price per Share: $54
Minimum Investment: $756
LiquidPiston is seeking to reimagine the combustion engine through the development of an advanced rotary internal combustion method that calls upon the company’s patented thermodynamic rotary engine architecture. It’s quite the mouthful, but they promise a result of compact, powerful, quiet, efficient, low-vibration, multi-fuel capable engines.
Monogram Orthopaedics
Amount Raised: $6.2 million
Previously crowdfunded: N/A
Investors: 4,082
Valuation: $75 million
Price per Share: $6.27
Minimum Investment: $250.80
Monogram is a medical technology company that is ushering in a new era of joint reconstruction. Through the linking of 3D printing and robotics via automated digital image analysis algorithms, they’re designing a robot that mitigates risks of poor placement, fracture, and subsidence in the joint replacement process.
Additional Equity Crowdfunding Resources
Interested in learning more about StartEngine and equity crowdfunding as a whole? We’ve got some great resources for you:
- Kickstarter vs. StartEngine (Video)
- How Equity Crowdfunding Works (Video)
- What is Equity Crowdfunding? (Video)
Here at CrowdCrux, our mission is to lead the movement into the equity crowdfunding era. To stay up-to-date and learn more about equity crowdfunding as both an entrepreneur and investor, be sure to:
- Subscribe to the once-weekly newsletter
- Check out the Crowdfunding Demystified Podcast
- Subscribe to the Youtube Channel
- Find the book: Equity Crowdfunding Explained
Ready to launch your own StartEngine campaign? Book a coaching call with our founder Salvador Briggman — who has tons of great experience and insight on running campaigns in the equity crowdfunding space!
We hope that this article has been informative for you as you set out to discover all the possibilities of StartEngine and equity crowdfunding. The future of non-accredited startup investing is very bright!
