Investing in an Alternative Asset Like an NFT? This Company Says It May Have Better Options

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Once in a while, a new trend or product emerges and snatches everyone’s attention.

One example could be non-fungible tokens (NFTs), which have grabbed the digital space recently. NFTs have driven an incredible amount of hype in the cryptocurrency community.

The technology enables people to build collectibles on the blockchain, making them open for anyone to trade easily. In March, the sale of an NFT created by the digital artist Beeple for $69 million sent shock waves through the art world.

This sale opened the floodgates for the sale of other digital assets. NFTs are the craze now, with many seeing them as a perfect investment option, but a big question brought up by some is: are they?

For starters, NFTs are part of what is popularly known as alternative investments. These investments include private equity or venture capital, art and antiques, hedge funds, commodities, real estate, and others. Alternative investments don’t easily fall into one of the standard predefined investment categories like stocks, mutual funds, and bonds.

Alternative Investments Can Have High Risk

Alternative investments typically have much higher risk and reward levels. They also come with higher investment minimums.

Without a doubt, the alternative investment industry is vast and growing rapidly. While the offers are usually mouth-watering, they can be extra risky because compliance in the industry is a bit behind and lacks regulations.

Start the Engine of Growth

But in this confusing maze of alternative investment options, a Los Angeles-based company — StartEngine Crowdfunding Inc. — wants to stand apart from the rest. The company is at the forefront of this industry, helping to make alternative investments more accessible and safe to the everyday investor.

StartEngine is a leading equity crowdfunding platform where people can find and invest in early growth companies and startups. Launched in 2015, StartEngine has helped more than 500 companies raise over $450 million from a community of over 600,000 users.

The equity crowdfunding platform is committed to revolutionizing how companies raise capital through the Jumpstart Our Business Startups (JOBS) Act and helping entrepreneurs achieve their dreams. To protect and guarantee investors’ investments, the company has a robust compliance team that vets all investments for any red flags or risks.

The company is registered with the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA),  which monitor and regulate StartEngine’s activities.

Investing Early Before Companies Become Big?

StartEngine has had an impressive run of successes since its launch. The platform has been a launchpad and pivotal to the growth of companies like Digital Brands Group Inc. DBGI, Monogram Orthopedics, and Tap Systems Inc.

Getting to invest in Microsoft Corp. MSFT, Amazon.com Inc. AMZN, Apple Inc. AAPL, Tesla Inc. TSLA, Johnson & Johnson JNJ or Pfizer Inc. PFE early on would be quite nice with a time machine — but such opportunities have passed for those who haven’t taken them. However, new opportunities always continue to pop up.

StartEngine says its platform is ripe with ambitious companies set to break boundaries and pioneer products and services that will transform the world.

According to KingsCrowd and StartEngine Crowdfunding market research, StartEngine did better than Wefunder Inc. and Republic in terms of the amount raised via Regulation Crowdfunding (Reg CF) and Regulation A (Reg A+) in the 2nd quarter of 2021. The company raised $66 million compared to $33.9 million and $28.6 million raised by Wefunder and Republic, respectively.

To further enhance its product offering, the Los Angeles-based company last year launched its investor trading marketplace — StartEngine Secondary — so that users can invest in companies on its platform and trade with other investors. It is one of the first trading platforms in the U.S. for Reg C.F. and Reg A+ offerings with this marketplace. StartEngine was the first to quote its shares on StartEngine Secondary and since its launch, more than $1.5 million worth of shares have been traded between 1,200 investors.

StartEngine is confident the trading platform will unlock its full potential as it hopes to help companies raise more than $10 billion by 2029.

The crowdfunding company believes it is never too late to be a part of history and the journey begins here.

Disclaimer: This Reg A+ offering is made available through StartEngine Primary, LLC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment. For more information about this offering, please view StartEngine's offering circular, supplement to the offering circular, and risks associated with this offering.

In addition, as described in the Offering Circular, the Company retains the right to continue the offering beyond the Termination Date, at its sole discretion. 

Kevin O'leary is a paid spokesperson for StartEngine. Read the 17-b disclosure for more information.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.