Overview
StartEngine Crowdfunding, Inc. is the largest equity crowdfunding platform in the US and the first mover in the industry. StartEngine has raised over $450M via Reg A+ and Reg. CF combined through its subsidiaries StartEngine Primary and StartEngine Capital, for over 500 company offerings on our platform to date. On StartEngine, anyone can invest in private businesses that offer shares of stock, debt, revenue share securities and more. Entrepreneurs are no longer dependent on traditional sources of capital, such as private equity or venture capital firms, to bring their ideas to life; they just need other like-minded visionaries willing to take a chance on something novel.
Cost to raise money using StartEngine
The cost of launching a Regulation Crowdfunding campaign varies on a case-by-case basis, but generally speaking it costs between $4,000-$10,000 for the financial review and legal documentation required to launch a Reg CF campaign. If you are looking to raise more than $1.07M, you will need a full financial audit, which will bring an additional cost.
However, it is possible to launch at no cost upfront if you meet a few criteria: 1) the company is incorporated as a Corporation and 2) the maximum raise limit is set to $107,000 to start, which allows you to self-certify the company’s financials and save on the financial review cost.
Regulation A+ costs a good deal more, ranging anywhere between $50,000-$100,000. It takes longer to launch as well. Per a report from the SEC, it takes an average of 110 days to be qualified.
Given the cost and time of becoming qualified for a Regulation A+ offering, we recommend that companies begin with Regulation Crowdfunding if they are interested in raising capital through equity crowdfunding. If you want to learn more about Regulation A+, click here, as the rest of this FAQ is devoted to Reg CF.
In terms of fees, StartEngine only makes money when you raise money. We charge 7%* of total capital raised for Regulation Crowdfunding offerings, an additional 2% of what you raise in equity, as well as $10K in deferred revenue that we collect when the offering is complete.*The % charged may fluctuate between 7-12% based on the method of investment and fees associated.
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