StartEngine Reports 146% Revenue Growth In First Half of 2021
StartEngine has reported its financial results for the six months ended June 30 2021. Overall growth is strong, and we are very encouraged by our performance. Top line revenue growth went up 146% year-over-year to $13.36 million for the first half of 2021, and we successfully transitioned from losses to profits of over $2 million.
Our traditional crowdfunding business for startups continues to expand, and we are diversifying into other alternative assets as well. As part of our goal to increase liquidity for investors, we’ve also launched our own secondary trading platform.
Financial Strength
Across the board, we are pleased with the growth achieved through the first six months of the year ended June 30.
- Top line revenue growth is up 146% year over year to $13.36 million, with gross profits up 186% to $11.19 million in the first half of 2021. For context, StartEngine’s total full year revenues in 2020 were $12.5 million. We did more revenue in the first 6 months of 2021 than we did in all of 2020.
- We successfully transitioned from operating at a loss, to producing operating income of $2.13 million.
- Net income of $2.09 million, or $0.07 per share through the first half of the year vs. a loss of $0.04 per share during the same period in 2020.
- Total shareholders equity (the company’s total assets minus total liabilities) of $25.38 million vs. $8.8 million in June of 2020.
Regulation crowdfunding remains the largest piece of our business, with revenues increasing 153% year over year to $6.94 million. We believe the growth in the amounts was partially driven by the laws increasing the cap limits for Regulation CF offerings to $5 million.
Commissions from Regulation A offerings are our second highest source of revenue, bringing in $3.57 million in the first half of the year. The average amount raised by issuers is increasing, which helped grow this segment of the business by 264% year over year.
Burgeoning segments of new revenue include StartEngine Collectibles, and StartEngine Secondary. Watch our CEO Howard Marks discuss our latest filing in a live webinar and participate in a Q&A with our shareholders and investor community:
Looking Ahead
While pleased with our financial results through the first half of the year, StartEngine remains focused on the future. To date, we have raised over $400 million for businesses. Our goal is to carry out $10 billion in equity raises by 2029.
Based on current trends, we don’t see our growth slowing down. Cash flow is strong, and we are continually working to increase both the quantity, and quality of crowdfunding options. To do this, StartEngine is expanding further into alternative assets through StartEngine Collectibles.
Our first foray outside of startups is wine collections. This is an asset class quickly gaining popularity due to its ability to compete with the S&P 500 over time. Our first five wine collections have already sold out, with more planned for the future. Soon we’ll be adding options like real estate, sports memorabilia and more.
StartEngine Secondary is our new trading platform where investors can buy and sell shares in certain companies that have raised capital on StartEngine. Our key goal with StartEngine Secondary is to drive increased liquidity for shareholders, and spur investor interest in the space.
We cannot say thank you enough to investors using our platform, as well as those who are invested in StartEngine. We’re not done yet! There are very exciting things to come.
Want to be a part of the crowdfunding space? StartEngine is currently doing its own offering! You too can own shares in our business, and be a part of the journey as we grow in this exciting area of investment. More information on our offering is available here.
To read our full form 1-SA filing, click here
This Reg A+ offering is made available through StartEngine Crowdfunding, Inc. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment. For more information about this offering, please view StartEngine’s offering circular and risks associated with this offering.
Kevin O’Leary is a paid spokesperson for StartEngine. Read the 17(b) disclosure here.
Companies which intend to be quoted on StartEngine Secondary’s new alternative trading system (the “ATS”) are subject to certain requirements which the company may or may not be able to satisfy in a timely manner. Even if a company is qualified to quote its securities on the ATS, there is no guarantee an active trading market for the securities will ever develop, or if developed, be maintained. You should assume that you may not be able to liquidate investments or be able to pledge shares as collateral.
FOR ANY SERIES OF STARTENGINE COLLECTIBLES FUND I LLC FOR WHICH THE OFFERING STATEMENT FOR THAT OFFERING HAS NOT YET BEEN QUALIFIED BY THE SEC:
NO MONEY OR OTHER CONSIDERATION IS BEING SOLICITED, AND IF SENT IN RESPONSE, WILL NOT BE ACCEPTED.
NO OFFER TO BUY THE SECURITIES CAN BE ACCEPTED AND NO PART OF THE PURCHASE PRICE CAN BE RECEIVED UNTIL THE OFFERING STATEMENT FILED BY THE COMPANY WITH THE SEC HAS BEEN QUALIFIED BY THE SEC. ANY SUCH OFFER MAY BE WITHDRAWN OR REVOKED, WITHOUT OBLIGATION OR COMMITMENT OF ANY KIND, AT ANY TIME BEFORE NOTICE OF ACCEPTANCE GIVEN AFTER THE DATE OF QUALIFICATION.
AN INDICATION OF INTEREST INVOLVES NO OBLIGATION OR COMMITMENT OF ANY KIND.
AN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC. YOU MAY OBTAIN A COPY OF THE PRELIMINARY OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT FROM HERE.
