StartEngine's Acquisition Spree Isn't Over – Here's Its Next Target

If a business is thriving, market downturns can be a great time to expand. 

Struggling businesses likely aren’t spending as much on advertising or expansion, so there’s less competition. This makes it the ideal time to grow because you might be the only game in town, and acquisition targets might be at a depressed valuation because of the markets.

Recessions often make or break companies. Downturns can make raising funds difficult and result in less profitability so problems can quickly add up.

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One company making the best of this current downturn is StartEngine, a leading equity crowdfunding platform in the U.S. It recently announced the acquisition of another leading competitor — SeedInvest.

But it doesn’t seem like StartEngine is done with its acquisitions. In a recent webinar, StartEngine CEO, Howard Marks, hinted as to the company’s next acquisition target. 

The Jumpstart Our Business Startups (JOBS) Act took effect in 2016, allowing everyday investors to invest in startups. The law was intended to allow anyone to invest in startup companies, but many people are using the provisions to invest in assets like art, wine and shares real estate properties. 

These alternative assets have quickly grown in prominence and become popular among investors. StartEngine recently launched its alternative investments page called StartEngine Collectibles to help everyday investors invest in things like art, wine and other collectibles.

StartEngine doesn’t have a real estate platform or acquisition pipeline. Marks sees the space as its next acquisition area, although he doesn’t know exactly what company it would be. Real estate, collectibles and startups are the three major equity crowdfunding markets, so that would put all of these markets under the StartEngine umbrella.

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