Remarkable Success Stories on StartEngine's Equity Crowdfunding
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Chapter 1: The State of Equity Crowdfunding
Equity crowdfunding is currently experiencing a transformative phase. Having recently gained traction, numerous companies are now recognizing it as a legitimate funding option. Despite this growth, early-stage investments typically require a decade to yield returns. Given that this industry emerged in the U.S. just six years ago, the timeline for payoffs can be lengthy. However, there are noteworthy success stories that provide hope to potential investors. With this context, let’s delve into the top five success stories.
Section 1.1: Solectrac — 68% Return
Solectrac specializes in designing and selling electric tractors. Their fundraising campaign on StartEngine concluded in December 2020, and the company was acquired roughly six months later, resulting in a 68% return for its investors. This campaign raised nearly $1 million, translating to approximately $1.67 million in returns for shareholders. Many investors I know were ecstatic to learn about the acquisition and the significant returns they would receive.
Section 1.2: Elio Motors — 200% Return
Elio Motors represents another intriguing case. This was the first fundraising campaign on StartEngine, amassing nearly $17 million at $12 per share. The controversy lies in the fact that Elio Motors later went public with an initial share price of $40. Although shares traded as high as $40 for several days, they ultimately settled around $20 before dropping to a low of $0.35. Despite the volatility, early investors had opportunities to realize gains between 75% to 200%, making it a success for those who capitalized on the high share prices.
Section 1.3: Knightscope — +250% Return
Knightscope's journey is notably complex. Their initial fundraising round was priced at $8 per share, with a 10% conversion preference, effectively setting a per-share value of approximately $7.20. Subsequent rounds pushed the share price to $10. When they went public, shares briefly reached $27.50. Although the stock has since decreased in value, many early investors had the chance to double their investments during the peak trading days, which I still consider a successful opportunity.
Section 1.4: Boxabl — +1000% Growth
Boxabl presents a unique case. Although there has yet to be a return to investors, those who invested in Boxabl on StartEngine have experienced a 10-for-1 stock split, leading to a valuation increase of over 1000%. They have successfully produced over 100 Boxabl casitas, each valued at around $50,000, and are ramping up production. With substantial pre-orders and high-profile endorsements, Boxabl is poised for future growth, marking it as a potential success story.
Section 1.5: TerraCycle — +2000% with Dividends
TerraCycle's story is still unfolding, but it holds immense potential for investors. Currently, investors receive dividends amounting to 50% of the company's annual profits. Following their StartEngine fundraising campaign, the dividend doubled from $2.09 to $4.21. Projections for 2021 suggested revenues could reach up to $75 million, leading to possibilities of an 8% dividend or even higher. With plans for an IPO on the horizon, TerraCycle could deliver substantial returns for investors in the coming years.
Chapter 2: Conclusion
Through these success stories, it’s evident that while equity crowdfunding can be risky, it also offers remarkable opportunities for significant returns. As the industry matures, investors will be watching closely to see how these companies evolve and what future successes emerge from platforms like StartEngine.