StartEngine is an equity crowdfunding platform where everyday investors can buy stakes in startups and private companies, rather than simply donating money like on traditional crowdfunding sites. Companies use StartEngine to raise capital by offering securities—such as equity or debt—to the public, creating a way for people to support early-stage businesses and potentially share in their growth.

What Is StartEngine?

StartEngine connects private companies with a large pool of individual investors through online investment campaigns. Instead of raising money only from friends, family, or institutions, founders can open their raise to the crowd and offer investors actual securities in return.

On StartEngine, individuals can invest relatively small amounts into a wide range of industries, from technology and consumer products to entertainment and more. The platform supports several U.S. securities exemptions (including Regulation Crowdfunding and Regulation A+) that allow both accredited and non-accredited investors to participate, subject to certain limits.

What Is the StartEngine Venture Club?

The StartEngine Venture Club (previously called Owner’s Bonus) is a paid annual subscription that offers extra perks to active investors on the platform. For a $275 yearly fee, members receive a 10% bonus in shares when they invest in campaigns that participate in the Venture Club bonus program, effectively boosting their ownership for the same dollar amount invested.​

Members also receive priority access to waitlisted investment opportunities, email alerts about new bonus-eligible launches, and 48-hour early access to select StartEngine Private offerings. In addition, Venture Club members get a 20% discount on selling fees on StartEngine’s trading platform, StartEngine Secondary, and access to sell securities on the StartEngine Marketplace.

It is important to note that there is no guarantee an active market for these securities will develop or continue, and it may take time to buy or sell shares or use them as collateral. Because Venture Club members pay a fee for these benefits, StartEngine has a conflict of interest in prioritizing their access to new opportunities and dedicated investor support compared to non‑members.

How the Venture Club Works in Practice

Once an investor purchases a Venture Club membership, the 10% share bonus automatically applies to eligible campaigns marked with a yellow lightning‑bolt icon in the Rewards section of their offering page. For example, if a Venture Club member invests $100 in a participating company at $1 per share (100 shares), they would receive an additional 10 bonus shares, ending up with 110 shares total for the same $100 investment.​

Investing vs. Trading on StartEngine

StartEngine supports two distinct actions: investing and trading.

What Is “Investing” on StartEngine?

Investing on StartEngine means buying newly issued securities directly from a company through its live crowdfunding campaign page. An example would be visiting a specific offering page and clicking “Invest Now” to purchase equity or debt that the company issues as part of its funding round.

After completing an investment, users can view their holdings in their StartEngine dashboard under the “Investments” section. These investments reflect ownership interests—such as shares or notes—granted by the issuing company itself.​

What Is “Trading” on StartEngine?

Trading happens on StartEngine Secondary, the company’s SEC‑registered Alternative Trading System (ATS), which allows investors to buy and sell certain securities that were previously offered through equity crowdfunding. On this peer‑to‑peer platform, investors trade shares with each other instead of buying directly from the issuing company.

The core difference is where the securities come from: investing involves purchasing from the company’s primary offering, while trading involves buying or selling already‑issued shares via StartEngine Secondary among other investors.

How Much Can You Invest?

Investment limits depend on whether someone is an accredited or non‑accredited investor and the type of offering.

• For Regulation A+ offerings, non‑accredited investors can generally invest up to 10% of their annual income or net worth, whichever is greater.​

• For Regulation Crowdfunding offerings, if a non‑accredited investor’s annual income or net worth is less than 124,000 USD, they can invest the greater of 2,500 USD or 5% of the greater of their income or net worth over any 12‑month period.​

• If both annual income and net worth are at least 124,000 USD, the investor can typically invest up to 10% of the greater of those figures, capped at 124,000 USD over any 12‑month period.​

An accredited investor is someone with a net worth of at least 1 million USD (excluding a primary residence) or an annual income of at least 200,000 USD individually—or 300,000 USD combined with a spouse. Accredited investors do not face the same statutory investing limits under Regulation A+ and Regulation Crowdfunding that apply to non‑accredited investors. Investors under 18 cannot invest on their own, but a parent or guardian may be able to invest on their behalf via structures such as UTMA accounts or trusts.​

What Types of Securities Can You Buy?

StartEngine hosts a variety of security types that private companies can offer to investors.

Common structures include:

• Equity: Typically common or preferred shares, representing ownership in a company.​

• Convertible notes: Debt instruments that may convert into equity later if certain conditions are met.​

• Debt (promissory notes): Loans where investors receive interest payments during the term and repayment of principal (plus any unpaid interest) at maturity.​

• Revenue share agreements: Structures where investors receive repayments tied to a multiple of their original investment, paid from the company’s gross revenue.​

• Revenue participation rights: Often used for specific entertainment projects, where investors may receive net revenue up to a certain multiple and then share any excess revenue with the issuer.​

Unlike donation‑based crowdfunding platforms, these instruments allow investors to own a stake or claim in the underlying business or project.

Can Canadian or UK Investors Use StartEngine?

StartEngine does not actively market to, or solicit investments from, investors in the United Kingdom or Canada and is mindful of local regulatory concerns. To reduce regulatory risk for the companies raising capital, StartEngine currently does not accept investments from unaccredited investors in the UK or Canada.​

However, accredited investors from the UK can invest through the platform, subject to applicable rules.​

How Can You Pay for an Investment?

StartEngine supports several payment methods for investments.​

• Credit cards: Card payments are captured at the time of investment and are typically marked as “received” once the funds successfully settle, usually within a few days.​

• ACH (e‑check): Funds are only withdrawn once a company passes its minimum funding goal and escrow is opened; transfers can take several business days to reach escrow and additional time to clear.​

• Wire transfers: Investors initiate these through their bank using provided instructions, and the status remains “not received” until the wire arrives and is applied; investments of at least 750 USD are generally required for this option.​

International investors can typically pay using credit cards or wire transfers, but not ACH. For added security and authentication, StartEngine uses Plaid for many ACH transactions, although it may not support every financial institution or account type.