With its most recent equity crowdfunding raise, StartEngine is officially a unicorn.
The company has been entirely funded by retail investors, with some of them sitting on massive gains. With the company's monumental rise to being one of the biggest equity crowdfunding portals on the planet, lots of investors who invested in some of its earliest rounds are sitting on substantial gains.
StartEngine has been on a roll recently with a number of big announcements. It recently acquired leading equity crowdfunding platform SeedInvest and had its largest raise week ever. StartEngine raised $10.6 million in one week on its platform in the third quarter. As StartEngine continues to grow, ideally, so will its valuation. Because retail investors are the ones funding the company’s growth, a number of them will eventually be sitting on substantial gains.
But just how big are those gains? If you invested $1,000 in StartEngine in its first raise in 2018, which ended in 2019, you’d be holding for three to four years. The company raised its earliest round at a price of just $7.50. Since then, StartEngine has done a 3-for-1 split and is still sitting at a hefty premium of its first raise. This means $1,000 invested in its first raise would be $10,000 now.
While StartEngine hasn’t launched an initial public offering (IPO) yet, it is open for investment for anyone. Anything can happen, but if the company continues to grow, it’s likely when it does IPO, it will be at a price higher than that. It’s likely some of those early investors will be sitting on gains even higher than 10,000% once StartEngine does IPO.
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