We raised over $8.3M at a $119M valuation in our last Regulation A+ offering, which closed in March 2019. Our current Regulation A+ offering has a pre-money valuation of $190M, and our maximum funding goal for this round is $41M. The following factors influenced our decision to increase our valuation. First and foremost, we established our broker-dealer StartEngine Primary LLC to facilitate Regulation A+ offerings, and we got regulatory approval to launch our trading marketplace StartEngine Secondary. We had neither at the start of our last offering.

We also signed a new partnership agreement with Kevin O’Leary who will bring greater awareness to StartEngine and help us reach more companies and more investors. Last year, we also changed our fee structure and began taking equity in the companies that raise on our platform. We’ve also announced our plans to offer alternative investments on StartEngine, such as real estate. Between 2018 and 2019, we’ve also increased the amount invested on StartEngine 67% by YoY and the number of first time users 103.9% YoY.

Traditionally, you would have to wait until StartEngine went public, declared a dividend, or was acquired by another business to receive a return on your investment (a process that can take many years if at all). These are both are possible in StartEngine’s future, but once we launch our investor trading marketplace, you may also be able to sell your shares on StartEngine's website to other investors by posting the price per share you are willing to sell at, as well as how many shares you're selling, and see if there are any takers on the market. However, having a platform to sell your securities does not guarantee that there will be any purchasers for those securities at your desired price (or at any price), and some states do not permit trading of unregistered shares. For example, California won’t be able to participate unless we find a regulatory solution.

We are not the only equity crowdfunding platform in the space, but we believe there are several important qualities that distinguish us from other platforms, including Wefunder, SeedInvest, and Republic. Some of those differentiators include:
‍

• Our CEO Howard Marks has a proven track record of building successful businesses with Activision.

• We have renowned businessman Kevin O’Leary as our strategic advisor.

• We have launched more companies than any of our competitors.

• We are the 10th fastest growing private company in California, according to the Inc. 5000 Series list.

• We plan to launch a trading platform for investors. Such a marketplace does not yet exist in the US.

• We offer unique services, such as StartEngine Secure for capitalization table management and StartEngine Promote for digital marketing.

• We are the only platform to use Regulation A+ to raise funding for itself, and we have over 9,000 shareholders to spread the word about our business.

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority.

The company is subject to all the same risks that all companies in its business, and all companies in the economy, are exposed to. These include risks relating to economic downturns, political and economic events and technological developments (such as hacking and the ability to prevent hacking). Additionally, early-stage companies are inherently more risky than more developed companies. You should consider general risks as well as specific risks when deciding whether to invest. For specific risks related to the Company, its Business, its Financial Condition, and the planned Offering, please read our Offering Circular.