Best StartEngine Alternatives

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Contributor, Benzinga
March 4, 2023

As equity crowdfunding continues to grow in popularity, more platforms are emerging as alternatives to the popular platform StartEngine. While StartEngine offers many advantages to investors and entrepreneurs, several other options are available for those seeking to raise funds or invest in startups. In this article, Benzinga explores five of the best StartEngine alternatives, their pros and cons and how they compare to StartEngine.

SeedInvest

SeedInvest is an equity crowdfunding platform that offers investment opportunities in startups and small businesses. Founded in 2012, SeedInvest has helped fund over 200 companies and boasts a 75% acceptance rate for companies seeking funding.

Pros:

  • Strong emphasis on investor protection and due diligence
  • Offers a diverse range of investment opportunities, including real estate and cryptocurrency
  • Minimal investment requirements, with some offerings starting as low as $500

Cons:

  • Higher fees than some other crowdfunding platforms, with a 7.5% fee on successful campaigns
  • Limited selection of investment opportunities compared to larger platforms like StartEngine
  • Some investors have reported long wait times to receive investment returns

Republic

Republic is a crowdfunding platform that aims to democratize investment opportunities by allowing anyone to invest in startups, regardless of income or net worth. Founded in 2016, Republic has grown quickly, with over $350 million raised to date.

Pros:

  • Lower fees than many other crowdfunding platforms, with a 6% fee on successful campaigns
  • Offers a diverse range of investment opportunities, including startups, real estate and gaming
  • Emphasizes community and social impact, with many campaigns focused on social or environmental causes

Cons:

  • Limited selection of investment opportunities compared to larger platforms like StartEngine
  • Higher minimum investment requirements than some other platforms, with some offerings starting at $1,000
  • Some investors have reported difficulty accessing returns on their investments

Wefunder

Wefunder is a crowdfunding platform that focuses on supporting small businesses and startups. Founded in 2011, Wefunder has helped fund over 2,000 companies and boasts a 95% success rate for companies seeking funding.

Pros:

  • Lower fees than many other crowdfunding platforms, with a 5% fee on successful campaigns
  • Offers a diverse range of investment opportunities, including startups, real estate and craft breweries
  • Emphasizes investor protection and due diligence, with a focus on transparency and disclosure

Cons:

  • Limited selection of investment opportunities compared to larger platforms like StartEngine
  • Higher minimum investment requirements than some other platforms, with some offerings starting at $1,000
  • Some investors have reported difficulty accessing returns on their investments

Fundable

Fundable is a crowdfunding platform that focuses on early-stage startups and small businesses. Founded in 2012, Fundable has helped fund over 500 companies and boasts a 70% success rate for companies seeking funding.

Pros:

  • Lower fees than many other crowdfunding platforms, with a 3.5% fee on successful campaigns
  • Offers a diverse range of investment opportunities, including startups, real estate and small businesses
  • Emphasizes investor protection and due diligence, with a focus on transparency and disclosure

Cons:

  • Limited selection of investment opportunities compared to larger platforms like StartEngine
  • Higher minimum investment requirements than some other platforms, with some offerings starting at $1,000
  • Some investors have reported difficulty accessing returns on their investments

AngelList

AngelList is a crowdfunding platform that focuses on early-stage startups and angel investing. Founded in 2010, AngelList has helped fund over 2,000 companies and boasts a community of over 200,000 accredited investors. AngelList is a strong alternative to StartEngine, particularly for those interested in investing in early-stage startups. The platform offers a wide range of investment opportunities, and its focus on angel investing can be attractive to investors looking for high-risk, high-reward opportunities. However, investors should be aware of the risks involved in investing in startups and should carefully evaluate each opportunity before investing.

Pros:

  • Offers a diverse range of investment opportunities

Cons:

  • The platform can be overwhelming for new investors, as there are many startups listed and it can be difficult to know where to start.
  • There is no guarantee that any particular investment will be successful, and investors may lose some or all of their investment.
  • AngelList charges fees to startups for fundraising, which some investors may find concerning.

Final Thoughts on StartEngine Alternatives

When it comes to finding the best alternative to StartEngine, it ultimately depends on your specific needs and investment goals. Each of the platforms listed above offers unique pros and cons to consider. Some may be better suited for investing in startups, while others may offer a wider range of investment opportunities. Be sure to carefully research each platform and consult with a financial advisor before making any investment decisions.

Frequently Asked Questions

Q

Is it safe to invest in equity crowdfunding platforms?

A

Investing in equity crowdfunding platforms carries risks, as investments are illiquid and may not perform as expected. However, the SEC requires equity crowdfunding platforms to provide certain disclosures and protections for investors.

Q

How much can I invest in equity crowdfunding campaigns?

A

The amount you can invest in equity crowdfunding campaigns depends on the specific platform and campaign. Most platforms have minimum investment requirements, and some have maximum investment limits.