8/11/2017 The StartEngine Index: July 2017 StartEngine

Ryan Hynes Follow

Director of Community, StartEngine
Aug 8 6 min read

July 2017
The following data covers Regulation Crowdfunding raises between May
16, 2016, and July 31, 2017. Data is sourced from all publicly disclosed
Form C lings with the SEC.

Index: 523
The index has increased by 11.3% this month. Read up on last months
Index here. Cheers to growth!

Total CapitalRaised
Across all platforms, companies have raised over $52M through
Reg CF.

Capital Raised by Companies in Regulation CF Since Inception (Includes Closed Campaigns and Live Campaigns
That Have Disbursed Funds)

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Type of Securities O ered

The big three still reign supreme: Common Stock, SAFE Notes, and
Debt.

Since June, there has been a 5% increase in the overall market

share for SAFEsthis, even though SAFEs have come under recent
scrutiny by the SEC. Still, SAFE shares the majority market share with
Common Stock, each accounting for ~28% of the market. Debt
oerings also saw a strong increase from 20% last month to 26% this
month.

Types of Securities O ered By Companies in Reg CF Since Inception

Less common types of securities like Revenue Sharing, Convertible

Note, and Preferred Stock account for the rest of the market.

Type ofCompany
This month we began tracking the types of companies registered with
the SEC. A large majority are corporations at 68.4%, with 28.5% as
LLCs.

Its interesting to see Public Benet Corporations represent 2.1% of

the total. These corporations use state laws to allow the management
to control the company for benets other than shareholder wealth
creation.

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Types of Companies Whove Raised in Reg CF Since Inception

Number of Raises PerPortal

This month we started tracking the number of specic raises per
portal. Wefunder accounts for 105 campaigns in Regulation
Crowdfunding; StartEngine follows at 50; SeedInvest rounds out the
top three with 23 campaigns.

Percentage of Total Number of Campaigns in Regulation Crowdfunding Since Inception

Average CompanyMakeup
The average company had 5 employees (15% less than last month)
and is 3 years old. The average company had under $400K in assets,

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under $70K in cash, and an average of just under $300K in revenue.

The average company is not protable with an average $210K in losses

in 2016. These prot numbers are around 20% lower than last
month, likely due to smaller companies joining the ranks in the last
30 days.

In some ways, this could could indicate a trend of earlier startups

utilizing Regulation Crowdfunding. Smaller companies have the
hardest time raising capital because venture capitalist and angel
investors typically want to see strong progress prior to investing.
The crowd can break down that barrier.

State of Operation
Its still California, but the tides are shifting.

Over 39% of the companies who have raised capital since

inception are from California. This is decrease from last month as
more companies in other states are raising capital under Regulation
Crowdfunding. The next most popular is Texas with 8.8%, followed
by New York 6.7%.

Can you think of an issuer from your home state who has raised
capital from the crowd? Might be worth Googling. We are seeing
companies across the U.S. taking advantage of this regulation.

Capital Dollars Raised in Regulation Crowdfunding Since Inception byState

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County of Operation
This month, the county with the most raised from Regulation
Crowdfunding since inception is Los Angeles County with $5.9M by
33 companies, a sharp increase from last months $3.8M.

This means LA took over the top spot from San Diego County
which is now in fth place. In second place is Alameda County (East
Bay) with $4.3M raised followed by Travis Texas (Austin) at a little
over $4M raised.

Percentage of Capital Dollars Raised in Regulation Crowdfunding Since Inception byCounty

. . .

The 2017Momentum
The following covers data from raises in 2017 only.

Top 10 Raises in2017

The Top 10 Raises are starting to ll with companies reaching the $1M
mark. Companies are now allowed to raise up to $1.07M in Regulation
Crowdfunding. 5 companies of the top companies raised on
StartEngine, 2 on Wefunder, 2 on SeedInvest, and 1 on NextSeed.

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Top Ten Companies by Capital Raised through Regulation Crowdfunding in2017

Funding Portals in2017

Since the beginning of the year, the funding portals with the most
closed funding raised under Regulation Crowdfunding is Wefunder
with a market share of 34.7%. StartEngine is at 27.3% and
MicroVentures is at 13.4%.

Dollars Raised in Regulation Crowdfunding By Fully Closed Campaigns in 2017 byPortal

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Dollars Raised, and Number of Successful Campaigns, By Fully Closed Campaigns in 2017 byPortal

. . .

Raising in LosAngeles
Since last month, one LA-based company cracked the Top Ten for Top
Ten Raises in Los Angeles. The company, That Christmas Movie LLC,
raised on StartEngine to nance a comedic lm.

This raise, amongst others helped boost LA past San Diego in total
dollars raised.

Los Angeles County by theNumbers

14
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14
campaigns in progress.

5
new campaigns submitted to the SEC in July.

3
successful closes in July.

~$2.1M
raised in July.

Types of Raises inLA

As reported last month, companies from LA are still raising through
Common Stock more than SAFE Notes.

Total Raised by Types of Raises in Los Angeles in Regulation Crowdfunding Since Inception

Los Angeles Top 10 All TimeRaises

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In true Hollywood form, That Christmas Movie grabs a spot in the

limelight.

Top Ten Raises By LA-Based Companies in Regulation Crowdfunding Since Inception

. . .

Raising in SanDiego
Many companies in San Diego have utilized Regulation Crowdfunding
to raise capital. On StartEngine alone, three companies from the
Solana Beach area have raised successfully.

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San Diego County by theNumbers

5
campaigns in progress.

1
new campaign submitted to the SEC in July.

3
successful closes in July.

~$400K
raised in July.

Types of Raises in SanDiego

Last month we reported SAFE Notes trending in San Francisco. It
appears from our data on San Diego, the farther south you go in
California, the less likely youre to do a SAFE Note.

Total Raised by Types of Raises in San Diego in Regulation Crowdfunding Since Inception

San Diego Top 10 All TimeRaises

Fitness, apparel, and tech dominate the market in San Diego county.

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Top Ten Raises By SD-Based Companies in Regulation Crowdfunding Since Inception

. . .

Raising in OrangeCounty
No, LA and Orange County are not the same place. There are, after
all, two Real Housewives franchises here. However, in July the same
number of Orange County entrepreneurs (5) submitted campaigns to
the SEC as did companies from LA.

Orange County by theNumbers

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campaigns in progress.

5
new campaign submitted to the SEC in July.

0
successful closes in July.

~$383K
raised in July.

Types of Raises in OrangeCounty

Unlike in San Diego, there are issuers in Orange County who have
oered Debt oers via Regulation Crowdfunding.

Total Raised by Types of Raises in Orange County in Regulation Crowdfunding Since Inception

Orange County Top All TimeRaises

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Top Ten Raises By Orange County Based Companies in Regulation Crowdfunding Since Inception

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