What is StartEngine?
StartEngine is an equity crowdfunding platform that democratizes investment opportunities by allowing both accredited and non-accredited investors to participate in startup and collectible investments. The platform facilitates capital raising for companies through Regulation Crowdfunding and Regulation A+ offerings, providing investors with access to early-stage ventures they believe in.
Investors can browse hundreds of investment opportunities, securely create accounts, submit payments, and own financial stakes in various ventures. The platform also offers features like self-directed IRA accounts for retirement fund investing and a secondary trading platform for selling eligible securities, making it a comprehensive solution for alternative investment participation.
Features
- Equity Crowdfunding Platform: Enables investment in startups and collectibles through Regulation Crowdfunding and Regulation A+ offerings
- Investment Browsing: Provides access to hundreds of investment opportunities from various companies and collectibles
- Self-Directed IRA Support: Allows investors to use retirement funds for investments through dedicated IRA accounts
- Secondary Trading Platform: Enables selling of eligible securities after investment
- Regulatory Compliance: Supports both Regulation Crowdfunding and Regulation A+ with appropriate investor limitations and disclosures
Use Cases
- Investing in early-stage startups as an individual investor
- Diversifying investment portfolios with alternative assets like collectibles
- Using retirement funds for startup investments through self-directed IRAs
- Participating in equity crowdfunding campaigns for promising companies
- Trading eligible securities on a secondary market platform
FAQs
-
What are the investment limits for non-accredited investors?
For Regulation A+, non-accredited investors can invest up to 10% of their annual income or net worth per year, whichever is greater. For Regulation Crowdfunding, investors with income/net worth under $124,000 can invest up to 5% of the greater amount, while those above $124,000 can invest up to 10%. -
How do I open a self-directed IRA on StartEngine?
You can open a self-directed IRA account through StartEngine by visiting their IRA page for step-by-step instructions. If you already have a self-directed IRA with another provider, you can still invest but the process will be manual and may take longer. -
When will I receive shares after investing?
At the close of an offering, investors whose funds have cleared will receive an email with a countersigned Subscription Agreement as proof of purchase. Companies may conduct multiple closes throughout a campaign, and investors included in a withdrawal period will receive their agreement immediately after that withdrawal. -
Can I cancel my investment?
For Regulation Crowdfunding, investments can be canceled anytime up to 48 hours before closing. For Regulation A+, there's a 48-hour cancellation period initially, then company-specific policies apply. Canceled investments have a 10-day clearing period followed by refund processing within 10 business days. -
What is the difference between Regulation Crowdfunding and Regulation A+?
Both regulations enable crowdfunding capital investments from accredited and non-accredited investors, but differ in investor limitations, maximum fundraising amounts, and disclosure requirements. Regulation Crowdfunding has stricter investor limits while Regulation A+ allows companies to raise larger amounts with different filing requirements.
