Invest in startups in exchange for equity or debt
Invest in a real estate fund
Investments
$250
The minimum investment on StartEngine typically starts from $250, with the average being around $500.
Investments
$100
The Roots Investment Community Fund allows investors to start with a minimum investment of $100.
High Risk
4/5
Investing on StartEngine carries risks including market volatility, liquidity challenges, regulatory changes, the high likelihood of company failure, dilution of shares, limited company information, and the absence of guaranteed returns.
Moderate Risk
3/5
Investing in the Roots Investment Community Fund carries risks including market fluctuations, economic changes, property-specific issues, and potential for financial loss.
Minimum Liquidity
1/5
Liquidity on StartEngine Secondary varies due to its nature as a peer-to-peer trading platform with specific eligibility criteria and trading hours. Initially limited to companies that have raised on StartEngine, the platform's liquidity is influenced by the availability of securities and the matching of buy and sell orders within designated market hours.
Minimum Liquidity
1/5
Investors in the Roots Investment Community Fund can cash out after the first year, with liquidity options available quarterly for added flexibility.
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Not Predictable Return
N/P
Potential returns on investments are uncertain and vary. StartEngine's role ends after a company's capital raising concludes, leaving it without control or insight into post-offering investment activities.
High Return
16 %
Investors in the Roots Investment Community Fund can expect an annualized return of 16%.
Long-term Investment
5+ years
Investments through StartEngine typically have a long-term horizon, often requiring several years to potentially yield returns due to the early-stage nature of the companies.
Short-term Investment
1 year
The recommended investment period for the Roots Investment Community Fund is at least a year, but liquidity is offered quarterly for investors needing flexibility.
Who can invest
International
StartEngine allows anyone over 18 to invest. However, due to regulatory concerns, StartEngine does not currently accept investments from residents of the UK or Canada.
Who can invest
United States
The Roots Investment Community Fund is open to both non-accredited and accredited investors.
Moderate Volatility
3/5
Assets on StartEngine, mainly shares in startups and early-stage companies, exhibit high volatility due to uncertain revenues, evolving business models, and market sensitivity.
Moderate Volatility
3/5
Assets within the Roots Investment Community Fund may experience volatility due to economic conditions, interest rate changes, and local market dynamics. However, real estate typically shows less volatility than stocks, with rental income offering some stability.
Regulation and audits
SEC Regulated
StartEngine operates under strict regulatory oversight by the SEC and FINRA, ensuring adherence to investor protection and market integrity rules.
Regulation and audits
SEC Regulated
The Roots Investment Community Fund is regulated by the SEC, with an offering circular filed under Regulation A+.
Insurance
Yes
StartEngine's memberships with FINRA and SIPC signify its commitment to investor protection, with SIPC offering insurance against the loss of cash and securities if a broker-dealer goes bankrupt. However, it doesn't cover market loss.
Insurance
Yes
The Roots Investment Community Fund likely holds insurance to protect its assets, including property, liability, and loss of income insurance, safeguarding against damage, claims, and lost rental income.
Payouts
No Recurring Payouts
Dividends on StartEngine depend on the individual company's policy and investment terms, with startups often reinvesting profits to fuel growth rather than distributing dividends.
Payouts
Dividends
Investors receive quarterly distributions, which they can reinvest or cash out, offering flexibility in managing returns.
Withdrawals
Investors can withdraw available funds from their StartEngine Investment Account after a 10-day waiting period from the initial transfer, subject to providing additional information for security if needed.
Withdrawals
Investors can cash out after the first year, with the Roots Investment Community Fund offering quarterly liquidity options.
Extra Fees
Yes
Investors may encounter a 3.5% processing fee on investments, depending on the company's choice. Wire transfers could have additional bank fees, while ACH and credit card investments don't have extra fees beyond the 3.5% if applicable. Trading on StartEngine Secondary is free for buying, but selling shares includes a 5% transaction fee.
Extra Fees
Yes
The platform charges a $5 transaction fee for the first investment and $3 for subsequent investments. A 6% fee applies if liquidating before one year; no fee after one year.
Taxes
Annual Statement
Investors must procure the necessary tax documents directly from the entities in which they have invested, since StartEngine does not distribute tax forms.
Taxes
Annual Statement
As a REIT, the Roots Investment Community Fund passing profits to shareholders who can deduct up to 20% of dividend income as capital gains, with no cap or wage restrictions.