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Earlier this year, equity crowdfunding giant StartEngine teamed up with its reward-based crowdfunding counterpart Indiegogo. The deal will carve a path for Indiegogo’s over 800,000 alumni to transition to regulation crowdfunding raises on StartEngine and introduce a huge community of entrepreneurs and backers to the equity crowdfunding platform.
As if that weren’t impressive enough, the firm just announced another major move: StartEngine will acquire its competitor SeedInvest.* The consolidation will add 700,000 users to StartEngine, as well as a robust pipeline of top fundraising companies (e.g. NowRX, which raised $20M on SeedInvest in 2020 alone).
Under the terms of the deal, SeedInvest’s current parent company and the issuer of USD Coin, Circle, will also become a stakeholder in StartEngine. That constitutes a significant vote of confidence from a, frankly, gigantic financial institution, as the equity crowdfunding platform looks to cement its industry dominance.
The acquisition follows what’s already shaping up to be another strong year for the firm. In 2022 StartEngine entered Inc. Magazine’s list of the 5,000 fastest growing companies in the country and grew its investor community to more than 1 million users.
And right now, their round is open to the public meaning you can join StartEngine’s impressive list of backers. Become a shareholder today.
Will Crowdfunding Platforms Succeed In A Volatile Market?
The post-pandemic world brought an investment boom and soaring tech valuations, but for many founders, the era of easy access to capital has come to an abrupt end. Funding for startups fell 23% worldwide in the first two quarters of 2022 as venture capital firms drew down their portfolios. By contrast, equity crowdfunding’s democratic model has proven relatively resilient.
Against the backdrop of ongoing market volatility, StartEngine believes the consolidation could signal a new era, in which equity crowdfunding overtakes venture firms as a primary source of capital for early-stage businesses. The company has now opened its fifth funding round of capital to the public – building on the $65 million it’s already raised from the crowd – in order to make that new era a reality.
This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice. *Completion of the acquisition is subject to closing conditions and regulatory approval. See additional information here. **Total raised includes StartEngine’s own raises and is inclusive of investments that have been closed on, investments that are received but not yet closed on, and investments that have been submitted but not yet received. Reg A+ offering made available through StartEngine Crowdfunding, Inc. No broker-dealer or intermediary involved in offering. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment. Please see the most recent Supplement, Offering Circular and Related Risks for more information.
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