Reply from StartEngineNov 1, 2023
Hi Dan,
Thank you for your feedback, we take these kinds of concerns very seriously and I would love to provide as much information to you as possible.
StartEngine provides investors an opportunity to invest in early-stage start-ups. What this means is that you are often investing in early-stage companies. Investments in these types of companies are risky by their nature, and many often fail without any element of fraud or misconduct.
As we try to remind our investors in various places throughout the website, including in the educational materials which all users agree to when creating an account, the universal website footer, and every investment agreement used in conjunction with any offering on our platform, these investments are speculative, illiquid, and involve a high degree of risk including the possible loss of your entire investment.
Even if a company is successful, it takes some time, often years, before an investor can have an opportunity to realize any returns on these types of investments. While we wish all the companies who raise our platform the best of success, we also encourage investors to remember when making any investments through the platform that all investments are speculative, illiquid, and involve a high degree of risk including the possible loss of your entire investment, and to take this risk under consideration and invest responsibly.
As we are consistently trying to progress and ensure our investor's feedback is heard, we have launched a new platform as a part of our business called Marketplace.
As mentioned, typically investors have to wait for an exit event like an acquisition or IPO to potentially see a return or liquidate their investment. However, we know investors would like the option to exit their investments sooner, so we launched StartEngine Marketplace.
On Marketplace, a seller can make an offer to sell shares in a startup. They can specify the number of shares they’d like to sell and the price per share. A buyer can then choose to purchase all – or some – of the shares in the offer.
If a buyer accepts a seller’s offer, the transaction will be facilitated by StartEngine’s broker-dealer via a 30 Day+ Transaction. Unlike public securities, shares in startups and privately held companies take a little more time and effort to transfer, up to 30 business days on average.
With the above, I would be happy to provide any further information on this or anything else you would like to address. Please feel free to contact us directly at [email protected].
Again, we appreciate your message and feedback.
Thank you, have a great day!
- StartEngine Support