What do I get when I submit an investment?

StartEngine is an equity crowdfunding platform that allows individuals to invest in private companies and startups. Instead of collecting donations or asking friends and family for funds, companies on StartEngine have come to you, the crowd, to offer securities in exchange for your investments.

Unlike other crowdfunding platforms where you simply donate to a company you are excited about, on StartEngine you have the opportunity to own a piece of these companies!

Below are the most types of securities that have been or are currently available for campaigns on StartEngine:

Equity: This is our most common offering type, with most companies offering Common or Preferred shares.

Convertible Notes:  This is our second most common offering type. This is a debt offering, that has the opportunity to turn into equity if the company meets certain criteria set in their terms. Click here to learn more about convertible notes.

Debt (Promissory Note):  This is a debt offering that is typically structured to pay interest to investors throughout the course of the loan, plus repay any accrued, unpaid interest and principal back to investors at the maturity date.

Revenue Share: This is a revenue sharing offering that is typically structured to pay back investors a certain multiple on their investment (i.e. 1.5x, 2x, etc.) out of the company’s gross revenue after a certain period of time.

Revenue Participation Rights: This is similar to a revenue sharing offering but is specialized for use with individual entertainment properties such as a movie or play.  These typically, repay investors 100% of net revenue up to a certain multiple of their investment (i.e. 1.2x) and then split revenue in excess of that amount with 50% going to investors, and 50% going to the company (and any other participants the company has negotiated with).

Please follow this link to learn more about how an IPO or exit event might impact your investment:

https://help.startengine.com/hc/en-us/articles/4404556234253-What-happens-if-a-company-I-invested-in-goes-public-or-is-acquired-

Please note, there is no guarantee a company you invest in will go public or offer a liquidity event.

 

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