StartEngine Review: Pros, Cons and What to Know

StartEngine Ratings at a Glance

Wondering whether StartEngine is a good option for you? Take a look at how this investment platform ranks across several key indicators and learn about the different pros and cons.

Startup Investment Options

StartEngine hosts a wide range of startup investments, utilizing Regulation A+, Regulation CF, and Regulation D offerings which allow non-accredited investors to participate.

Not just any company can launch a crowdfunding campaign on StartEngine. Startups must meet certain criteria to be considered, then StartEngine analyzes each company to determine if determine they are the right fit for the platform and audience.

Users can browse available startups by industry and how much the company has already raised.

StartEngine maintains solid customer service options. Users can get in touch with support by calling 800-317-2200 or emailing contact@startengine.com. StratEngine also boasts a Help Center with information and answers to common questions. Companies interested in raising capital as well as potential investors are encouraged to contact the StartEngine team with any questions they may have. 

StartEngine makes money by charging transaction fees to companies selling shares. In some raises, they also charge investors a small fee. However, StartEngine only makes money once a company raises capital. It charges 7% of the total capital raised for Regulation Crowdfunding offerings, an additional 2% of what is raised in equity and another $10,000 in deferred revenue that’s collected once the offering is complete.

How They Make their Money

It’s important to note that on top of the fees StartEngine charges, there are separate costs for launching a Regulation Crowdfunding (Reg CF) campaign. Reg CF requires a financial review and legal documentation that can cost anywhere from $4,000 to $10,000. 

Regulation A+ is more expensive and can cost anywhere from $50,000 to $100,000. The process is also longer — it can take an average of 110 days to qualify.

StartEngine offers many benefits for both investors and companies. Investors can discover new and exciting companies to invest in and diversify their portfolios. While businesses can access capital and raise funds without having to go directly to a venture capitalist or bank. Fortunately for investors, there's low investment minimums to get started — as little as $100. Investors can also access presentation decks and rest assured that the startup companies they’ve invested in have passed anti-fraud and background checks. Nonetheless, not all information is available and some may be limited to the company’s discretion. 

Regulation A Raises

StartEngine allows companies to raise capital via Regulation Crowdfunding and Regulation A+. The platform provides companies with their own account managers to help them manage the legal and financial technicalities, including filing Form C. Companies also can access a campaign strategist and creative lead who can provide insights into the marketing components of fundraising. 

These companies are able to launch advertising campaigns and collaborate with StartEngine’s internal digital ad agency. They can also withdraw the funds they raise on a rolling basis and put them to immediate use for business expenses or marketing purchases. 

StartEngine is an extremely straightforward platform for both investors and companies undergoing fundraisers. Investors have access to a clear-cut interface with information about different opportunities and can track their investments directly from the online dashboard. Users can also leverage the comments section, follow campaigns for updates and even ask questions directly to company founders. 

Companies fundraising through the platform have a ton of tools at their disposal. The StartEngine team is willing to walk startups through the process, providing advice and even managing some of the paperwork associated with filing a Form C. The interface is easy to navigate, and the process is incredibly straightforward. 

StartEngine Versus Competitors

StartEngine isn’t the only crowdfunding platform available. Nonetheless, it stands out among the competition because of its low costs and fees for both investors and businesses. Take a look at how StartEngine compares to competitors. 

StartEngine is a leading crowdfunding platform for a number of reasons. It’s easy to use for both investors and companies. They can walk companies through every stage of the fundraising process and provide as much information as possible. Dedicated marketing teams also are available to help companies launch advertising campaigns. 

Investors benefit from little to no fees and an intuitive interface that allows them to invest, track and ultimately diversify their portfolios. All companies on StartEngine have offerings meeting StartEngine's criteria and offerings qualified by the SEC. As a result, investors should proceed with caution and never invest more than they can afford to lose. 

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