
StartEngine Blog
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Get insight into the minds behind StartEngine. Our team will cover everything from raising capital via equity crowdfunding to investing in startups. StartEngine is the leading equity crowdfunding platform in the U.S., where everyday people can find and invest in early-growth companies and startups.
StartEngine Blog
1w ago
The Planning Stage
Filing a Reg A+ offering requires careful planning and attention to detail. Before you begin, it’s important to understand the regulations and requirements involved in the process. You’ll need to hire legal and financial advisors to help you navigate the complexities of the offering, and you’ll need to prepare all the necessary documentation, including an offering circular and financial statements.
During the planning stage, it’s also important to think about your marketing and outreach strategies. You’ll need to promote your offering to potential investors, which may requir ..read more
StartEngine Blog
1w ago
A New Frontier for Small Business Financing
Small businesses often face significant challenges when it comes to raising capital. Traditional fundraising methods, such as bank loans and venture capital, can be difficult to access, and often come with onerous terms and conditions. Reg A+ offers small businesses a new frontier for financing, with a more accessible and flexible fundraising option.
Reg A+ allows small businesses to offer and sell securities to both accredited and non-accredited investors, without requiring the same level of regulatory compliance as traditional IPOs. This means that ..read more
StartEngine Blog
1w ago
A New Frontier for Small Business Financing
Small businesses often face significant challenges when it comes to raising capital. Traditional fundraising methods, such as bank loans and venture capital, can be difficult to access, and often come with onerous terms and conditions. Reg A+ offers small businesses a new frontier for financing, with a more accessible and flexible fundraising option.
Reg A+ allows small businesses to offer and sell securities to both accredited and non-accredited investors, without requiring the same level of regulatory compliance as traditional IPOs. This means that ..read more
StartEngine Blog
1w ago
The Importance of SEC Compliance in Reg A+ Offerings
For startups looking to raise capital, Reg A+ offerings can be an attractive option. With the potential to raise up to $75 million, Reg A+ offerings provide a flexible and cost-effective way for companies to access public markets. However, as with any fundraising method, there are strict regulations that must be followed to ensure compliance with the law. The SEC, in particular, plays a critical role in Reg A+ offerings, and startups need to be aware of the regulations governing their fundraising activities.
Understanding the SEC’s Role in R ..read more
StartEngine Blog
1w ago
Raising capital is an essential aspect of starting and growing a successful business. For early-stage startups, angel investing is often seen as the go-to source of capital. However, it’s not the only option available. In this post, we’ll compare and contrast angel investing with other sources of capital, including venture capital, crowdfunding, and bootstrapping, to help you make an informed decision about which approach is right for your startup.
Angel Investing
Angel investing involves high-net-worth individuals investing their personal funds in early-stage startups. In return, they typical ..read more
StartEngine Blog
1w ago
If you’re an entrepreneur looking to raise capital for your startup, you may have heard of angel investors. But what exactly is an angel investor, and how can they help your business grow? In this post, we’ll define the term “angel investor” and explore the benefits and drawbacks of seeking angel investment for your startup.
What is an Angel Investor?
An angel investor is an individual who provides funding to startups in exchange for an ownership stake in the company. Unlike venture capitalists, who typically invest in more established businesses, angel investors are often willing to take on m ..read more
StartEngine Blog
2w ago
Reg CF (Regulation Crowdfunding) is a relatively new fundraising option for businesses that allows them to raise capital from a large pool of investors. Traditional funding sources, on the other hand, include loans from banks, venture capitalists, and angel investors. While both options have their pros and cons, businesses must carefully consider which option is best suited for their needs. If you’re looking to raise capital, learn more here.
Key differences between Regulation Crowdfunding and traditional funding sources:
The primary difference between Reg CF and traditional funding sources is ..read more
StartEngine Blog
2w ago
What is Reg CF?
Regulation Crowdfunding (Reg CF) is a relatively new method of raising capital that emerged as part of the Jumpstart Our Business Startups (JOBS) Act of 2012. Reg CF enables small businesses and startups to solicit and receive funding from a large pool of investors, including both accredited and non-accredited investors. This innovative approach to capital raising has become increasingly popular in recent years, particularly as traditional fundraising methods have become more challenging.
How does it work?
Reg CF allows small businesses to raise up to $5 million per year throug ..read more
StartEngine Blog
2w ago
Startups often face a difficult decision when it comes to fundraising: convertible notes vs equity financing? Both options have their advantages and disadvantages, so it’s important to carefully consider which is the right choice for your startup.
Key differences: convertible notes vs equity financing
Convertible notes are a type of debt that can convert into equity at a later time, while equity financing involves selling ownership in your company to investors. Convertible notes typically have a lower valuation than equity financing and may offer more favorable terms to early investors. Equity ..read more
StartEngine Blog
2w ago
If you’re considering using convertible notes as a way to raise capital for your business, it’s important to understand the potential advantages and disadvantages of this approach. Here are some key points to consider:
Advantages of convertible notes for capital raising:
Flexibility: Convertible notes provide flexibility for both the investor and the startup. Investors can convert their debt to equity if the company meets certain conditions, and startups can avoid setting an initial valuation until later rounds of funding.
Lower upfront costs: Since convertible notes are debt, there is no need ..read more