What is the StartEngine Review process?
What is StartEngine Review and why do I need it?
Because you’re raising money for your company using Title III equity crowdfunding, your campaign is subject to SEC rules. As the platform hosting your campaign, StartEngine is responsible for making sure that it’s compliant with all those rules.
In order to make sure it is, we’ve set up our campaign editor to streamline the collection and organization of information that companies are required to provide to investors and the SEC. This diligence process makes sure that you have all the information you need to include, and that it is accurate to the best of your (and our) knowledge!
How does the review process work once I submit my campaign?
The first thing we check for in the review process is Bad Actor Checks (“BAC’s”). These are reports that verify that the company is allowed to raise money through Title III Regulation Crowdfunding.
Once the BAC’s are cleared, Companies have the opportunity to go through 3 rounds of reviews at no cost! After 3 rounds, if the company wishes to continue, they must pay a fee of $1,000 here.
StartEngine Review begins once you’ve completed all the information in your campaign on-boarding tabs and you click the “Submit” button. This adds the Company to the Review queue, and prompts the StartEngine Compliance Team to conduct a review. Once you’ve submitted, the Compliance Team will have the review completed within 48 hours.
Upon receiving a review submission, a member from the Compliance Team is prompted to begin the compliance review. They go through every section of your campaign and review the information to ensure that it’s balanced, factual, and compliant with Title III Regulation Crowdfunding.
- If the information you provided is accurate and complete, you will be approved by StartEngine compliance team for preparation of filing to the SEC.
- If any sections are incomplete or non-compliant, the Compliance Team will make a note. Once the Compliance Team has completed the review, you will receive an email with a full set of instructions on how to address all the issues noted during the review process. Once you receive this email, the current round of StartEngine Review has been completed!
If you’ve been approved, great news!
If you received some comments, never fear! We have lots of resources available to help get you through them. In addition to the instructions included in the email, we also offer weekly online webinar Q&A where companies in review are able to get all their comments addressed. Take these opportunities to talk with our team about the comments you have received and to update your campaign accordingly. Once you think you’ve addressed all the comments, you may re-click the “Submit” button to re-enter your campaign to the Review queue.
What happens after you are approved by StartEngine Review?
Once your company has been approved by StartEngine Review, your offering document (the document filed with the SEC) is prepared and sent to you for final sign-off.
Once you sign-off, certifying that the filing document is accurate and complete, the form is filed electronically with the SEC.
Once the form is accepted by the SEC your campaign is ready to go live!