StartEngine Has Officially Raised $650 Million for American Startups and Businesses

A massive milestone for the company and the equity crowdfunding industry as a whole.

Photo by Piotr Łaskawski on Unsplash

It’s been a bit of a mixed year for equity crowdfunding. Despite several years of consistently exceptional growth, things have begun to slow down this year. Whether that's inflation cutting into people's expendable, and thus investment, income, or just skepticism around investments in general, it’s been a volatile year. However, that hasn’t stopped several of the top players from hitting new goals and rolling out exciting new things. One such announcement just rolled out that StartEngine, one of the leading equity crowdfunding sites in the world, has officially raised over $650 million.

This is actually a slightly slower pace than previous years, but Q4 tends to be StartEngine's best quarter as many startups tend to close their raises in December. This means that StartEngine has only raised about $150 million in 2022 despite the previous year sitting at $250 million. Again, this is likely to pick up a bit to close out the year, but it’s looking like an overall slight down or stagnant year for StartEngine on the raise side. One rather exciting thing is that it's unlikely to hurt their revenue as much as some might worry. StartEngine's “Owners Bonus” program has had exceptional growth sitting at over 530% YoY growth, likely fueled by the rollout of their “stackable” bonuses. Further, StartEngine has slowly been rolling out StartEngine Collectibles, and that has done incredibly, raising over $1.65 million this year alone.

This has led to relatively stagnant revenue growth, despite an overall decline in fees from raising funds. However, some larger raises like Legion M and LIFT Aircrafts just launched some large Reg A raises, and Rentberry is closing out their $12.4 million dollar raise soon too. The company is also listing a record number of startups, and while many are sitting at generally lower numbers, that will cumulatively help bolster Q4.

While it’s not the 100% YoY growth many hoped for, it’s still solid progress given the state of the overall market. As well, seeing that they have been able to bolster their alternative revenue streams makes for a very promising picture as the economy eventually inevitably rebounds.