There has been a lot of activity for StartEngine since my report entitled “StartEngine has emerged as Cryptocurrency Infrastructure First Mover” was published on June 6, 2018. In my report I had recommended that StartEngine’s be purchased aggressively at $5.00 per share. On June 15, 2018, the amount remaining from StartEngine’s $5 million Regulation A+ offering sold out. In conjunction with their announcement that the offering was no longer available StartEngine unveiled a new test the waters campaign for the raise of an additional $10 million through Regulation A+ at a share price equivalent of $10.00. Those who acted on my recommendation earlier in June now have a paper profit of 100%.
Even though StartEngine’s share price has appreciated nicely the shares are still a strong buy. It’s because StartEngine is a first mover with momentum. It was the first to launch the following offerings under the new rules and regulations instituted by the JOBS Act. The table below depicts the Regulations and the companies that utilized them to raise capital on StartEngine’s SEC regulated platform:
- Regulation CF (crowdfunding) offering; Gigmor
- Regulation A+ offering; Elio Motors
- Regulation CF ICO (initial coin offering); Indeco
The video below entitled “Why “First Mover” companies are poised to receive instant $1 billion valuations” is highly recommended.
There are two other reasons why investors should initiate a position in StartEngine or add to their existing position at a share price of $10 per share.
- In StartEngine’s post-closing and test the waters campaign announcement it also revealed that it had filed a patent on LDGR. It’s a decentralized application on the Ethereum blockchain. LDGR’s assists companies to provide liquidity for their investors securities. Should StartEngine be granted the patent its valuation would instantly go to above one billion.
- StartEngine’s aggressiveness to immediately launch an offering to raise an additional $10 million confirms that its management is committed to securing its first mover advantage and to get the company to a $1 billion valuation as soon as possible. StartEngine is now following a similar strategy that UBER deployed. The table below depicts the funding schedule that UBER followed to go from a $5 million to a $41 billion valuation in four years. Based on the $140 million valuation that StartEngine is raising the additional $10 million at its still valued for less than half of what UBER was valued for in its November 2011 Series B round.
The table below depicts how much one would have made had they invested $1,000 into each of UBER’s funding rounds between October 2010 and June 2014.
The minimum amount that StartEngine is accepting for investment in its newest offering is $500 and the share price is $10. Since the shares are offered through a Regulation A+ offering the shares are not restricted and are feely saleable.
To summarize, StartEngine shares are a “strong buy” even though StartEngine’s share price has increased by 100% to $10.00 as compared to its recently concluded offering’s share price an investment in StartEngine represents good value and potential appreciation for an investor. Below are the reasons:
- The risk of loss for an investor is much lower due to StartEngine being successful to raise an additional $5 million from its offering which was recently closed.
- StartEngine is now growing much faster than when it launched its last offering in October 2017. Its current month over month growth rate is 22%.
- StartEngine’s LDGR technology that it filed a patent on was developed subsequent to its last offering commencing. Should it be granted a patent on LDGR its valuation could quickly leap to $1 billion which would be equivalent to an approximate share price of $60.