Turning Your Crowdfunding Donation into Company Equity
In the recent years, crowdfunding has become a popular source of money for companies in a wide range of industries from Hollywood and the Veronica Mars movie to the tech world and Oculus Rift.
Yet, while private users are giving money to companies to create their product they are not receiving any equity or say in the company because the money they have given is essentially a donation. However, one company aims to change that.
StartEngine has announced the launch of their equity crowdfunding platform.
Through their platform StartEngine enables individuals to invest in private companies. In order for companies to leverage the platform they must first build their profile which includes a video. Then, once their profile is approved by StartEngine companies are able to market their product via social media and ads to bring potential investors to their page. If companies reach their funding goal their funds are immediately transferred from an escrow account into their account.
Launch partners for the equity crowdfunding platform include transportation startup Elio Motors and mobile games publisher XREAL.
“StartEngine’s alternative investing platform makes it possible for anyone to back the companies they believe in and truly share a stake in their success,” said XREAL co-founder Jordan Maron. “We’re thrilled to be raising funds in a progressive and personal new way that better resonates with my generation.”