What is the investing lifecycle?
The investing lifecycle is the path your investment takes on StartEngine, from the moment you submit it to the day you may be able to sell your shares. Here's what happens at each stage and what you can expect along the way.
1. You submit your investment
Choose a campaign, click Invest Now, enter your details, and pick a payment method. Before you invest, read the campaign page and offering documents so you understand the terms and risks. Private company investments are high risk and illiquid.
Right after you submit, you'll get an email confirming we received your investment.
Learn more: How do I invest? and How much can I invest?
2. Your investment goes through clearing
Every investment goes through identity verification and anti-money laundering (AML/KYC) checks, and your payment must be received. Timing depends on your payment method and whether any checks need a manual review. Large, IRA, entity, and international investments can take longer.
Once your investment clears, it's held in escrow until the company closes on it. You'll get an email when your investment has cleared.
Learn more: What does the investment clearing process look like?
3. The campaign stays open, and you can still cancel
You can cancel within these windows:
Reg CF: Anytime up to 48 hours before the company closes on your funds. You'll receive a “Notice of Disbursement” email with the cancellation deadline before each close.
Reg A+, Reg D, and Collectibles: Within 48 hours of submitting your investment.
If a campaign has a material change, you may be asked to reconfirm your investment. If you don't reconfirm, your investment will be canceled.
Learn more: How do I cancel my investment? and How do I reconfirm my investment?
4. The company closes on your funds
Once the company reaches its minimum funding goal, it can close on cleared investments, which moves the funds from escrow to the company. Companies may do several closes during a campaign (rolling closes) or one close at the end. Depending on timing, this can be weeks or months after you invested.
If a campaign doesn't reach its minimum goal, investments are not closed on and your funds are returned.
5. You receive your shares
After the close, you'll receive a confirmation email and your countersigned subscription agreement, which is your record of ownership. Your investment status will change to “Funds Invested” in your Portfolio. Once funds are invested, the investment can no longer be canceled or refunded.
Your shares are held in “book-entry” form. That means there's no paper stock certificate; the company's transfer agent keeps the electronic record of your ownership.
Learn more: When and how will I get confirmation on my investment?
6. You stay in touch with the company
Companies are encouraged to share progress with investors through emails and the Updates section of their campaign page. You'll get an email when a company posts an update. You can ask questions in the campaign's Comments section or email the company at the address in your subscription agreement.
Learn more: How do I receive updates from and contact the companies I invested in?
7. You may be able to sell, or the company may have an exit
Startup investments are long term, often 5 to 10 years or more, and there's no guarantee of a return.
Selling your shares: Reg CF shares can't be resold for one year after purchase. After that, you may be able to list eligible shares on StartEngine Marketplace. There's no guarantee a buyer will be found, and fees and requirements apply.
Exit events: If the company goes public, merges, or is acquired, the company or its transfer agent will contact you about any transfers or payouts. How an exit affects you depends on the terms of your securities.
Learn more: Can I liquidate (sell) my shares? and What happens if a company I invested in goes public or is acquired?
Where to check your status
Log in, click your avatar in the top right, and select Portfolio to see where each investment is in the lifecycle and view your documents.