What companies are allowed to raise capital on StartEngine?
StartEngine will allow all companies on the platform that meet a set of basic criteria, and are not on the prohibited company list outlined below. If any fraud is detected, the company is rejected. Criteria for companies to be on StartEngine is as follows:
- Company intends to raise capital through the crowd
- Company founder is 18 years of age or older
- Company is a registered legal entity
- Company is a U.S. based operating company
- Company and its officers pass the Bad Actor check and StartEngine's review process
- Company (Reg CF) meets any additional requirements as identified by the SEC. Details listed here.
- Company’s (Reg CF) campaign page meets our creative standards - All campaigns are reviewed by our content team before they can launch.
All companies that meet these criteria are able to conduct an offering on StartEngine.
Prohibited Company List
Although StartEngine welcomes companies of all types on its platform, certain industries and products are not allowed. StartEngine’s policy derives from deep research into relevant precedents. The policy is partly informed by other conduit platforms like Ebay, Google, Square, and Kickstarter, as well as brands outside of tech, like the NFL and the New York City MTA. With this policy, we aim to provide an egalitarian platform on which companies can raise capital, all while ensuring safe and compliant experiences for investors and entrepreneurs.
Companies engaged with the sale or manufacturing of the items below are prohibited from listing on StartEngine. Qualified materials include those which have been published, promoted, or produced by the entity and its employees—not by customers, users, or proponents of the entity:
This includes firearms, guns, pistols, knives, replicas of weapons, weapon accessories, and other devices. This includes any material intended to harm if fully utilized.
This includes companies with printed or visual material containing the explicit description or display of sexual organs, or activity intended to stimulate erotic feelings. These materials are obscene, indecent, or profane as established by the Federal Communications Commission.
- Discriminatory Material
This includes any materials that discriminate or encourage discrimination against people based on personal attributes such as race, ethnicity, national origin, religion, sexual orientation, gender identity, disability, medical or genetic condition.
- Illegal Business
This includes any sales that the U.S. Federal government has deemed illegal. This includes notably fraudulent multi-level marketing companies.
This includes any companies, products or services associated with the purchasing or selling of marijuana, or any medications containing marijuana. This does not include accessories or products associated with the use of marijuana, so long as there is no direct contact with marijuana.
This includes any product that cannot be advertised on TV or radio, as mandated by the FCC.
- Political Campaigns
This includes any organization that is funding to support a political initiative or candidate.
- Companies that Compromise the StartEngine Mission
StartEngine helps entrepreneurs achieve their dreams by democratizing access to capital. For business owners, this means access to funds. For everyday investors, this means access to investment opportunities. Any company that restricts access to capital, access to investment opportunities, or inhibits the growth of new companies is one that compromises the mission of StartEngine. These companies are prohibited.
- Investment Companies
Investment Companies, including, but not limited to, cryptocurrency mining companies.