We all have watched Shark Tank, right? And, deep down, we all would have wanted to invest in a startup company that looked promising in their ideas and presentation. However, it was never possible as the biggest barrier has always been no ideal platform and minmum amount criteria. This barrier seems to have been broken by StartEngine by enabling investors to invest in startups from as low as just $100.
What is StartEngine?
StartEngine is an online platform that allows startups to raise capital from accredited and non-accredited investors. The company was founded in 2012 by Howard Marks and is headquartered in San Francisco, California.
How does StartEngine work?
StartEngine allows startups to raise capital through Regulation Crowdfunding (Reg CF) and Regulation A+ offerings. Reg CF allows startups to raise up to $1 million from accredited and non-accredited investors, while Reg A+ allows startups to raise up to $50 million from accredited and non-accredited investors.
To raise capital on StartEngine, startups create a campaign page that includes information about their company, the investment opportunity, and the risks involved. Investors can then review the campaign page and decide whether or not to invest.
What are the benefits of investing on StartEngine?
There are several benefits to investing on StartEngine, including:
- Access to early-stage companies: StartEngine allows investors to access early-stage companies that are not yet available to the public. This can provide investors with the opportunity to get in on the ground floor of a potential success story.
- Diversification: StartEngine offers a wide variety of investment opportunities, which can help investors to diversify their portfolios.
- Low investment minimums: StartEngine allows investors to invest as little as $100 in a company. This makes it possible for anyone to participate in the startup investing process.
What are the risks of investing on StartEngine?
There are also some risks associated with investing on StartEngine, including:
- Illiquidity: The securities offered on StartEngine are illiquid, which means that they may be difficult to sell.
- Loss of investment: There is always the risk of losing money when investing in startups.
- Fraud: There have been cases of fraud on crowdfunding platforms, so it is important to do your research before investing in any company.
Overall, StartEngine is a legitimate platform that allows startups to raise capital from accredited and non-accredited investors. However, there are some risks associated with investing on StartEngine, so it is important to do your research before investing in any company.
Additional things to keep in mind when considering investing on StartEngine:
- Do your research: Before investing in any company, it is important to do your research and understand the risks involved. This includes reading the company’s offering documents and financial statements.
- Start small: If you have never invested before, going all in is not a good idea at all. This kind of investments should be done smartly. Going with small investment amount that will not dent your pocket is the way to go. Therefore start small and see how it goes. Also bear in mind, the investment you put in may take years to show appreciation.
- Be patient: Investing in startups is a long-term investment. It may take several years for your investment to appreciate in value.
If you are considering investing in startups, StartEngine is a good place to start based on reviews I have read in our research. Having mentioned that, I encourage you to do your own research, before investing. End of the it is your hard earned money and you always want to spend it wisely.
If you have any questions, please feel free to ask below..