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StartEngine Review

Depends

Should I use StartEngine?

Not disclosed - startengine.com

· 1 month ago

Fine for risk-tolerant investors making small, disposable-cash bets on startups they believe in. Wrong for anyone needing liquidity, income, or reliable returns — 77 exits from 6,375 funded companies tells the story.

Confidence

Medium. Based on ~40 public sources: Reddit, Trustpilot, BBB, ComplaintsBoard, FINRA coverage, and StartEngine case studies.

Ratings

  • Value for money
  • Ease of use
  • Feature depth
  • Support quality
  • Security posture

Pricing

3.5% per investment

Investor fees

ModelNot disclosed
Monthly fees3.5%
HardwareNot disclosed

Best for

  • Risk-tolerant retail investors
  • Small startup bets with disposable cash
  • Founders raising Regulation CF capital

Not for

  • Anyone needing liquidity or income
  • Retirement or emergency savings
  • Investors expecting reliable returns
  • People who won't eat 3.5% fees on losers

Gotchas - check before you buy

high

3.5% fee on every purchase; withdrawal fees can also apply.

high

Extreme illiquidity: 77 exits from 6,375 fundings — assume you can never sell.

medium

2022 FINRA enforcement settlement for compliance failures.

medium

Some longtime investors quit, citing the platform not defending their interests.

Pros and cons

Pros

  • Everyday investors can buy startup equity without accredited status
  • Large track record: 6,375 companies funded
  • Secondary trading available through its ATS
  • $760M+ raised through the platform
  • Security program penetration-tested via Cobalt

Cons

  • Only 77 exits from 6,375 fundings — most bets never pay off
  • 3.5% fee added to every investment
  • Fined by FINRA in 2022 for regulatory violations
  • Investments are speculative and illiquid by the platform's own disclaimer

Sources & method

- 10 sources - No known vulnerabilities found in the sources reviewed.

official x2review x5security x1news x2

Key stats

  • Value for money: 2/5

    Rating

  • 3.5% per investment

    Starting price

  • 10

    Sources

  • Analyzed

  • Value for money: 2/5. 3.5% fees on mostly illiquid, loss-prone bets
  • Ease of use: 3/5. Trustpilot 4/5, but complaints logged
  • Feature depth: 4/5. Reg CF raises, ATS trading, transfer agent services
  • Support quality: 2/5. 38 complaints on ComplaintsBoard
  • Security posture: 3/5. Pen-tested via Cobalt; 2022 FINRA action
  • 4/5 Trustpilot rating Trustpilot customer reviews
  • 6,375 Companies funded Only 77 exits
  • 3.5% Investor fee Added on top of every investment
  • 2014 Founded $760M+ raised via platform

Pricing

Investor fees

3.5% per investment

  • Charged on top of share price
  • Withdrawal fees may apply
  • Minimum investment varies by company

Security

No known vulnerabilities found in the sources reviewed.

What users say

Opinion is sharply split: Trustpilot shows 4/5, but many Reddit investors call the returns dismal and one post bluntly labels the platform a scam.

“StartEngine is a SCAM and NO ONE should use them”
Reddit, r/investing
“So is StartEngine just flushing money down the toilet?”
Reddit, r/investing
“StartEngine Trading very Low, Great value imo.”
Reddit, r/StartEngine

Companies that use it

  • Kara Water
  • Holidaily Brewing
  • Island Brands
  • Legion M
  • MyRadar
Full analysis

Based on ~40 public sources: Reddit, Trustpilot, BBB, ComplaintsBoard, FINRA coverage, and StartEngine case studies.

Legit regulated platform, but startup bets here are illiquid lottery tickets with 3.5% fees. Risk money only.

Methodology

Based on ~40 public sources: Reddit, Trustpilot, BBB, ComplaintsBoard, FINRA coverage, and StartEngine case studies.

Read how a report is made.

Sources

  1. Trustpilot reviews of StartEnginetrustpilot.com
    review
  2. StartEngine Review 2026: Honest Assessmentangelinvestorsnetwork.com
    review
  3. ComplaintsBoard StartEngine reviewscomplaintsboard.com
    review
  4. Reddit: StartEngine is a SCAM threadreddit.com
    review
  5. Reddit: Flushing money down the toilet threadreddit.com
    review
  6. FINRA enforcement actions against StartEngine and Wefunderjdsupra.com
    news
  7. StartEngine fees overviewthecrowdspace.com
    news
  8. StartEngine Cobalt penetration testing case studycobalt.io
    security
  9. StartEngine official sitestartengine.com
    official
  10. StartEngine app listingplay.google.com
    official

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