StartEngine closes a $5.5m investment round led by SE Agoura Investment LLC.
Los Angeles-based equity crowdfunding platform StartEngine Crowdfunding has announced the closure of a $5.5 million funding round. The main investor was SE Agoura Investment LLC – an investment affiliate of Aubrey Chernick. The fresh capital injection will be used mainly to expand the StartEngine platform and to enhance its marketing activities.
The company was created in 2013 by Howard Marks, co-founder of Activision, and Ron Miller. The platform allows start-ups to raise up to $50m in capital through crowdfunding campaigns. Similar to other platforms, StartEngine provides users with the chance to create their online profiles in an original and easy way, including text, images and videos. After a successful submission of the material, start-ups may start to market their offering and raise money.
Ron Miller, CEO of StartEngine, commented:
“This investment is further proof of the early success of the StartEngine platform and the potential of equity crowdfunding. This fundraise will elevate the StartEngine platform, adding new investment opportunities and furthering our mission to help entrepreneurs achieve their dreams.”
The StartEngine platform currently hosts campaigns in compliance with Title IV of Regulation A+ of the JOBS Act, allowing companies to secure up to $50M in funding through equity crowdfunding. However, with the implementation of Title III rules in May 2016, StartEngine will presumably expand its offering in order to cater to issuers looking to raise up to $1M.
Howard Marks, Executive Chairman and co-founder of StartEngine, added:
“This investment confirms our belief that equity crowdfunding will play a vital role in the rebirth of the entrepreneurial boom,” said “Equity crowdfunding will democratize access to capital, giving companies the ability to reach the funds necessary to continue to grow and be successful in the market.”
The US equity crowdfunding sector is expected to follow an upward trajectory in the year ahead. Undoubtedly, the new regulatory framework – fully effective in May 2016 – will be crucial in boosting the growth of the space. As the new Title III rules will allow businesses and start-ups to raise funds up to $1M, both from accredited and unaccredited investors.