2021 StartEngine Review • Benzinga

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Startup Investment Options

Wondering whether StartEngine is a good option for you? Take a look at how this platform ranks across several key indicators and learn about the different pros and cons. 

StartEngine maintains solid customer service options. Users can get in touch with support by calling 800-317-2200 or emailing contact@startengine.com. StratEngine also boasts a Help Center with information and answers to common questions. Companies interested in raising capital as well as potential investors are encouraged to contact the StartEngine team with any questions they may have. 

The vast majority of offerings on StartEngine are completely free for investors. Instead, StartEngine makes money by charging fees to companies selling shares. However, StartEngine only makes money once a company raises capital. It charges 7% of the total capital raised for Regulation Crowdfunding offerings, an additional 2% of what is raised in equity and another $10,000 in deferred revenue that’s collected once the offering is complete.

It’s important to note that on top of the fees StartEngine charges, there are separate costs for launching a Regulation Crowdfunding (Reg CF) campaign. Reg CF requires a financial review and legal documentation that can cost anywhere from $4,000 to $10,000. 

Regulation A+ is more expensive and can cost anywhere from $50,000 to $100,000. The process is also longer — it can take an average of 110 days to qualify.

StartEngine offers many benefits for both investors and companies. Investors can discover new and exciting companies to invest in and diversify their portfolios. While businesses can access capital and raise funds without having to go directly to a venture capitalist or bank. 

StartEngine maintains low investment minimums — as little as $100. Investors can also access presentation decks and rest assured that the startups they’ve invested in have passed anti-fraud and background checks. Nonetheless, not all information is available and some may be limited to the company’s discretion. 

StartEngine allows companies to raise capital via Regulation Crowdfunding and Regulation A+. The platform provides companies with their own account managers to help them manage the legal and financial technicalities, including filing Form C. Companies also can access a campaign strategist and creative lead who can provide insights into the marketing components of fundraising. 

Companies are able to launch advertising campaigns and collaborate with StartEngine’s internal digital ad agency. Companies also can withdraw the funds they raise on a rolling basis and put them to immediate use for business expenses or marketing purchases. 

StartEngine is an extremely straightforward platform for both investors and companies undergoing fundraisers. Investors have access to a clear-cut interface with information about different opportunities and can track their investments directly from the online dashboard. Users can also leverage the comments section, follow campaigns for updates and even ask questions directly to company founders. 

Companies fundraising through StartEngine have a ton of tools at their disposal. The StartEngine team is willing to walk startups through the process, providing advice and even managing some of the paperwork associated with filing a Form C. The interface is easy to navigate, and the process is incredibly straightforward. 

StartEngine Versus Competitors

StartEngine isn’t the only crowdfunding platform available. Nonetheless, it stands out among the competition because of its low costs and fees for both investors and businesses. Take a look at how StartEngine compares to competitors. 


Get started

securely through Diversyfund’s
website
Best For

Low Cost Real Estate Investing

1 Minute Review

DiversyFund isn’t your average crowdfunding platform. You’ll find that the company puts a twist on the traditional everyday crowdfunding platform, beyond anything you can find online with a simple Google search. You only have to look under DiversyFund’s skin one layer to surmise that DiversyFund is a conscientious developer and sponsor and helps hedge risk through improved vetting.

DiversyFund offers a multifamily real estate investment trust, the DiversyFund Growth REIT, and its main goals are to increase cash flow and resale value. It’ll automatically give you access to multi-million dollar real estate assets.

Best For

  • Those looking for an alternative investment beyond stocks and bonds
  • Individuals who aren’t sure they want to be landlords in the traditional sense
  • Investors who aren’t accredited
Pros

  • Only need to pony up $500 to get started
  • Open to investors all over the world
  • No expensive broker fees
Cons

  • You’ll only be able to access “blind pool” investments, which means that you can’t opt out of specific properties
  • There’s only one real investment option, the DiversyFund Growth REIT

Get started

securely through CrowdStreet’s
website
Best For

Private Inestments

1 Minute Review

CrowdStreet is a commercial real estate investing platform where people can invest directly in commercial projects. Unlike a brokerage firm, CrowdStreet isn’t a middleman. Instead, the platform acts as a marketplace where investors can pick and choose the best deals for their time horizon and strategy.

Available investments range from family living spaces to office buildings to storage facilities and investors can sign up for a free membership. Your investment options are limited to what’s live on the Marketplace and you’ll need…

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