The StartEngine Index: August 2018

General StartEngine Index September 10, 2018

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The StartEngine Index: August 2018

August 2018

The following data covers Regulation Crowdfunding raises between May 16, 2016, and August 31, 2018. Data is sourced from all publicly disclosed Form C filings with the SEC, as well as public websites.


Standard Analysis

Index: 1353

In August, businesses raised over $7.4M via Regulation Crowdfunding. After a record month in July, August showed a slight dip, but the momentum is still strong. In total, companies have raised over $135.3M via Regulation Crowdfunding since its inception in May 2016. The Index grew 5.7% this month.

Top Campaigns in August

The Full Raise Amounts as of 8/31 for the 10 largest active Reg CF Campaigns in August 2018

The top 10 campaigns this month reveal a great month for Wefunder, who had 6 of the highest raises in August. The top raise this month, Meow Wolf, is an intriguing blend of “interactive art exhibit, playground, mystery novel, and escape room,” according to its offering.

The reason that two offerings show amounts above the legal limit for Regulation Crowdfunding is that those offerings are oversubscribed, meaning the platforms hosting those offerings allowed investors to commit more funds than the company is legally allowed to disburse and use.

In these cases, companies have two options, simply accept up to $1.07M and return the overflow to the remaining investors or open a concurrent raise under a different exemption from registration.

Industry In August

Capital Raised in August by Industry

As in July, the Food & Beverage industry raised the most capital in August, with $1.9M raised, just over one-quarter of the total capital raised this month. Media & Entertainment came in second with $1.5M raised, and Technology in third with $878K.

Funding Portals

Offerings Filed with the SEC in August by Portal

In August, 58 companies filed their Regulation Crowdfunding offering with the SEC. StartEngine had the most filings with 18, Wefunder followed with 15, and SeedInvest in third with 5 filings.

State of Operation

Total Capital Raised Via Regulation Crowdfunding in August by State

In the month of August, California continues to lead Regulation Crowdfunding with over $2.3M raised. The real surprise is New Mexico’s appearance at number 2 this month, with $1.3M raised. To date, New Mexico has raised just under $1.5M. The massive increase last month is due to Meow Wolf’s successful raise.

County

Total Capital Raised in August by County

Perhaps coming as no surprise, given the State data, Santa Fe County in New Mexico raised the most capital in August, with $1.3M raised due to Meow Wolf’s success. Los Angeles County followed with $826K, and Harris County with $626K.

Momentum on StartEngine

Capital Raised on StartEngine in August by Offering

In August, Power Hero, a peer-to-peer marketplace for electronically charging vehicles, raised the most capital on StartEngine with $124K. Mycroft, an open source voice assistant, came in second with under $50 less than Power Hero, and the professional ultimate frisbee league American Ultimate Disc League came in third, with $109K raised.

Raising in Los Angeles

46

campaigns in progress — down 5 from last month

2

new offerings submitted to the SEC, down 7 from last month

~$826K

raised in July

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