The popular private securities marketplace StartEngine received its Broker-Dealer approval this month. The firm seeks to expand its capabilities in the tokenized security sector. Now, StartEngine can provide services to all 50 states via its fully regulated platform.
Reg A+ Funding
StartEngine Primary is a subsidiary of StartEngine Crowdfunding Inc. The firm registered with the Securities and Exchange Commission (SEC) and FINRA as part of its strategy to supply investors with the highest level of regulatory protections available. The licensing allows the company to raise capital via Reg A+ crowdfunding campaigns. These campaigns can be used to raise up to $50 million yearly.
Additionally, licensing permits the use of credit card investments. In turn, more investors can participate in the platform’s events. Also, the platform now allows investors to utilize bank transfers and wires as well. All of these factors provide investors with more flexibility and increases the value of the platform.
Importantly, companies benefit from the new licensing attained by StartEngine. Now, businesses can raise money on a yearly basis. Notably, firms seeking to acquire over $1.07 million in funding from the platform must utilize StartEngine Capital LLC. This is the official funding portal for the project.
Another huge benefit the platform’s users can enjoy is the ability to immediately trade tokenized shares. This strategy allows investors to trade their shares prior to a company going public. In most instances, shares appreciate heavily during these investment periods.
The company has seen major developments since its inception four years prior. The firm managed to gain a major foothold in the blockchain-based crowdfunding sector. This licensing is sure to help further the company’s goals of becoming the pivotal tokenized securities launch platform in the market.
StartEngine is based out of Los Angeles, California. The company was founded in 2014 by Howard Marks, Paul Kessler, and Ronald Miller. To date, the company has successfully funded over 265 companies. Today, the platform is recognized as the largest equity crowdfunding platform in the US.
StartEngine – Next Steps
StartEngine has no plans of slowing down its momentum in the coming year. Company officials already announced plans to start a secondary trading platform called StartEngine Secondary. This platform allows investors to trade securities issued by the company globally.
Access to the Secondary Markets
By providing investors a full suite of capabilities, StartEngine seeks to become a one-stop-shop for investors seeking a regulated and secure tokenized securities trading experience. Also, because of the all-inclusive strategy the company utilizes, investors can rest assured that their securities are compliant throughout the entire lifecycle of their investments.
Tokenized Security Sector Heats Up
This latest maneuver showcases just how quickly the tokenized securities sector is heating up. Investors continue to show growing interest in this budding industry. Analysts predict that this year will see a continued expansion of these platforms across the globe. Given the added security, lower costs, and all-around efficiency of these blockchain-based systems, it’s no surprise to see their popularity grow. You can expect to see StartEngine reach new heights now that they are fully licensed to operate in the US.