Equity crowdfunding platform StartEngine of Santa Monica has raised $5.5 million from two investors, according to a filing with the Securities and Exchange Commission.
StartEngine, founded by former Activision Executive Chairman Howard Marks, launched as a tech startup accelerator in 2011. In June, the company re-invented itself as an equity crowdfunding platform that helps startups raise money from nonaccredited investors in exchange for shares.
This type of financing has become possible in the last year thanks to new Securities and Exchange Commission rules enacted as part of the JOBS Act. Due to those changes, companies can now sell less than $50 million worth of shares to nonaccredited investors without the regulatory hurdles and costs that come with initial public offerings.
StartEngine’s first offering, a $25 million share sale for automotive startup Elio Motors of Phoenix, Ariz., was initiated last month and is ongoing.
A spokesman for StartEngine declined to comment.