They saw their largest week ever, two weeks of 160% growth, and raised hundreds of thousands of their own.
It seems StartEngine’s recent woes might be coming to an end, at least for a short while. StartEngine has seen unprecedented momentum the past couple of weeks after coming off a string of disappointing announcements. Not only has StartEngine’s own raise started to pick up some momentum nearing $7 million raised after months of seemingly stalling, but other companies seem to be doing well too. This comes after announcing an official partnership with IndieGoGo and coming off Boxabl’s record raise. All of this is creating a perfect storm for everyone involved, with StartEngine raising a record $10.6 million in just one week on the platform. This massive amount raised was likely fueled by the 160% week-over-week user growth for two weeks in a row.
StartEngine currently has 160 startups raising funds with crowd favorites like Legion M and Liquid Piston gearing up for Reg A’s on their platform. As well, Rentberry is currently nearing the end of their $12 million raise, so that will be booked in the second half of the year as well. Given the massive success and media attention of the Boxabl raise, there’s a chance we see a few larger companies coming in trying to replicate that. There’s still time for some companies to launch larger Reg CF campaigns and book them in Q4.
It’s definitely nice to see the change of pace. StartEngine has been sitting on a nice pile of cash for a while, so the raise money isn’t necessarily needed, but it could still help. StartEngine only raised about $4 million in the first 6 months of the campaign and has since raised probably $3 million in the past month or two. As an investor, despite the occasional criticism, I do want the company (and industry in general) to succeed. So it is a bit disheartening to see the raise stall and revenue decline.
With the launch of Secondary and StartEngine Accounts coming any day now, hopefully, the momentum continues. One of the biggest issues with Secondary was the lack of traction and not many people using it. If they can get consistent volume on the platform from this newfound traction and interest, that could really jumpstart the platform. Nonetheless, it’s nice to see the change of pace.