What is StartEngine | How does Crowdfunding work?

Start Engine is a platform for companies to raise funds and in turn a place for everyday investors to invest in companies or businesses they believe in. It was co-founded by Howard Marks, who also founded Activision the video game giant.

They have raised over $400m from 500 companies since 2016, making it one of the largest business crowdfunding sites on the internet to date.

Their company mission is:

“Help Entrepreneurs Achieve Their Dreams”

Their mission is to help other entrepreneurs and founders raise the funds they need to grow and achieve their dreams.

They focus on helping entrepreneurs who need start-up funding to get started and also those who are more advanced who need additional funding to fund future stages.

There are two parts to the funding including:

- Regulation Crowdfunding — to raise up to $5m — little to no start-up cost

- Regulation A+ — to raise up to $75m — $50,000-$75,000 start-up cost

So you would start with Reg CF and raise up to $5m and then return for further rounds such as Reg A for $10–20m, then allow the investors to trade and then return for Reg A again for capital of $20–75m.

They provide a team to help the companies launch and run their campaigns like an account manager and campaign strategist. They also help provide marketing campaigns via Facebook and other advertisers through their digital marketing company which they own.

On average they believe that 65% of your funds will be raised through their platform and you can collect funds as you raise them so you can put that towards any expenses you may be occurring as a business.

How does Crowdfunding Work?

Crowdfunding is an exciting way to get funding for business projects easily by leveraging the large network of investors that start engine is founded on.

The concept of crowdfunding though is pretty straightforward.

It starts with company owners developing a business idea that they want to explore. Some examples of projects may include health, technology, food, and drinks…