StartEngine, a Los Angeles-based online equity crowdfunding platform, was established in 2013 by Howard Marks and Ron Miller. This leading tech accelerators has recently acquired financing of $5.5 million from SE Agoura Investment LLL, an investment partner of Aubrey Chernick. The platform will use the financing to expand its operations through a series of vibrant marketing campaigns.
Miller, StartEngine’s CEO, said that the investment further proves two points. First, it proves the continuing achievement of StartEngine as an equity-based crowdfunding platform. Second, it demonstrates the potential of equity crowdfunding as a whole. Ron added that the funds will largely improve the platform and make it gain more traction, create and increase new investment opportunities and promote the platform’s mission of helping entrepreneurs access capital easily to get their businesses up and running.
Marks, StartEngine’s executive chairman, said that funding has confirmed their trust in the role of equity crowdfunding to revitalize the entrepreneurial boom is inevitable. According to him, equity crowdfunding has the potential of democratizing access to capital, allowing different types and sizes of companies to start or expand their businesses in their respective sectors. This will be beneficial to both entrepreneurs and investors.
Marks also believes that equity crowdfunding can increase diversity in tech and games industry. He said that if small individual and unaccredited investors are allowed to participate in equity crowdfunding investments and get good returns then they will quickly diversify these industries. This will make the traditional venture capitalists (VCs) start thinking of different ways to streamline.
The US’s equity crowdfunding sector is also expected to grow further this year when the new regulatory framework comes into effect in May. The new Title III rules allow startups and established businesses to raise up to $1 million within a period of 12 months, from both accredited and unaccredited investors.