StartEngine is an equity crowdfunding platform that facilitates investments in startups and growing companies for both accredited and non-accredited investors through Regulation Crowdfunding and Regulation A+. The platform has facilitated over USD 500 million raised overall, making it a major player in the equity crowdfunding space. StartEngine offers a diverse range of investment opportunities across various industries, including technology, consumer products, and sustainability.
One of StartEngine's notable features is StartEngine Secondary, an SEC-registered Alternative Trading System (ATS) operated by its broker-dealer affiliate, StartEngine Primary LLC. StartEngine Secondary allows investors to trade shares purchased through Regulation A+, Regulation Crowdfunding, or Regulation D offerings, providing liquidity to investments traditionally considered illiquid. It operates with specific trading hours and an order book feature to enhance transparency.
In February 2024, StartEngine listed its own shares on StartEngine Secondary, witnessing over USD 1.4 million worth of shares traded among 1,200 investors on the first day, showcasing the platform's potential to facilitate a vibrant market for secondary transactions. However, the first day of trading was volatile, with several sell orders placed at various price points, reflecting the pent-up demand for liquidity and differing investor sentiments.
StartEngine has also played a role in democratizing investment opportunities by enabling individuals to invest in startups at a stage traditionally reserved for venture capitalists and angel investors. The platform emphasizes investor education, highlighting the speculative nature and high degree of risk associated with these investments.
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