What are Bonus Shares?
Bonus Shares are incentives provided to investors participating in a particular campaign. Companies listed on the StartEngine platform can offer Bonus Shares through time-based perks, amount-based perks, or by participating in the StartEngine Venture Club Program. Each company has the discretion to determine the perks they wish to include in their offering.
Time-Based Perks are incentives given within a specific timeframe of the offering being open.
For instance, a company might offer a 20% bonus share within the first 48 hours.
Amount-Based Perks are incentives provided when an investor contributes a certain amount.
For example, a company may offer a 10% bonus share when an individual invests $1,000 or more, excluding fees.
The StartEngine Venture Club gives additional shares to individual investors who participate in the StartEngine Venture Club program.
Each investor participating in this program will receive 10% bonus shares for each investment made on all offerings that agree to be a part of the program.
You can easily identify a participating company by the yellow lightning bolt in their campaign header.
If your investment qualifies for bonus shares, these will be displayed in your checkout cart and on the “thank you page” following submitting an investment. They will also be reflected in the total share count on your dashboard and in your ownership documents once the investment is finalized.
Please note the following key points when investing in a company that offers bonus shares as an investment incentive:
Bonus shares from perks will not be granted if an investor submits multiple investments that, when combined, meet the perk requirement.
Investors eligible for multiple ways of earning Bonus Shares may now stack bonuses. This means that an investment eligible for a time-based bonus and the Venture Club bonus will receive both bonuses on that eligible investment.
For example, an investment eligible for a time-based bonus of 15% and the Venture Club bonus of 10% will get a combined 25% bonus on that eligible investment.
Time-based bonus shares and Amount-based bonus shares will not stack together--only one of these is eligible to stack with the Venture Club bonus, not both.
Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.
The most accurate way to view the investment incentives of a company is to read their offering circular linked on the campaign page.
FAQ:
Q: When do I receive the bonus shares?
A: Great question! You receive the bonus shares when your companies disbursed on your funds and you receive a “subscription agreement.” To check on your investment statuses, please check out this link.
Q: I invested $2,024 in a company that offers an amount-based perk of 10% bonus shares for investments over $1,000 and has a price per share of $11.50, but I only received 17 bonus shares and not 17.6 bonus shares. What gives?
A: Thanks for the inquiry. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share. As such, this is the reason why 17 shares are given, instead of 17.6 or 18 shares.
Q: I invested $500 and then invested $500 again in the same company. Can I now receive the bonus shares for the amount-based perk of $1,000?
A: Unfortunately no. Bonus shares from perks will not be granted if an investor submits multiple investments that, when combined, meet the perk requirement.
Q: I am a StartEngine Venture Club member and I invested in a campaign but have not received the 10% bonus?
A: The most likely reason for this is that the offering you invested in was not part of the StartEngine Venture Club program. We do not require that all companies listed on our platform be a part of this program. The best way to check if a company is a part of the program is to look for the yellow lightning bolt.
Q: I invested $40,000 and the campaign offers an amount-based perk of 10% bonus shares with investments over $1,000 and 20% bonus shares with investments over $30,000. Do I receive 30% bonus shares?
A: No. Under the updated policy, you can stack bonuses, but you cannot stack amount-based perks. In this case, you would receive the 20% bonus shares, which is the higher of the two amount-based perks.
Q: I invested $1,000 within 40 hours of the offering being open, and I am a StartEngine Venture Club Member. Can I receive the $1,000+ amount perk of 10% bonus shares, the time-based perk of 20% bonus shares within 48 hours, and the Venture Club bonus of 10% bonus shares for a collective 40% bonus shares?
A: Not quite. Under our updated policy, you can now stack bonuses however Time and Amount Based perks do not stack. In this instance you’ll receive the higher of the Time or Amount based perk eligible for that investment. This means you would receive the 20% time-based perk bonus shares, and the 10% Venture Club bonus, for a total of 30% bonus shares on your eligible investment. Please note that stacking only applies to one bonus of each type: time-based or amount-based, and the Venture Club bonus.
We hope this updated policy clarification provides our investors with greater opportunities and incentives. Happy investing!