StartEngine Crowdfunding, Inc., a Los Angeles, CA-based crowdfunding and securities offering platform, closed its Regulation A offering with nearly $5M raised through the sale of common stock.
The offering was filed in September 2017 and closed just hundreds of dollars short of the $5M maximum with commitments from over 3,400 investors.
Led by Howard Marks, co-founder and CEO, StartEngine is a crowdfunding and securities offering platform (including securities tokens) that allows companies to raise capital utilizing exemptions from registration under the Securities Act of 1933.
To date, the platform has been used by more than 160 companies to raise capital.
Following the close of its $5M round, StartEngine announced the start of its own initial coin offering (ICO), which coincides with the public announcement of its future roadmap for StartEngine Secondary, its security token trading marketplace.
StartEngine Secondary will utilize a blockchain technology called LDGR, a patent-pending decentralized application on the Ethereum blockchain with the purpose of helping companies to offer liquidity to investors. LDGR creates a security token for every company using StartEngine Secondary, thereby enabling investors to trade their holdings on an open, transparent marketplace.
As part of its secondary marketplace, StartEngine will also utilize StartEngine Secure, an SEC-registered transfer agent, to verify and handle security token trading. StartEngine plans to launch Secondary, assuming SEC and FINRA approval of StartEngine as a broker-dealer and ATS.