There’s a mechanism that offers remarkable opportunities for online investment in startups and companies in ascension, allowing groups and individuals to finance a business in exchange for participation. That’s equity crowdfunding, a current path to diversify investments that gather interest from both entrepreneurs and investors.


Crowdfunding is not a new element on the web. In fact, the first successful recorded crowdfunding campaign on the internet happened in 1997, when a British rock band called Marillion funded their reunion tour using online donations from their fans. Three years later, the first crowdfunding platform, artistShare, was created only to be followed by several others over the next decade. Then what’s the buzz about equity crowdfunding?


Modern Business Model

Well, in the first place, earlier forms of crowdfunding were focused on specific projects and ideas, like the Marillion tour or developing prototypes, instead of the future of companies. Secondly, they hadn’t a lot to offer back to their backers aside from “thank you” notes and, depending on the amount of money a backer provided, the early access to the product developed. Equity crowdfunding changes all that.


For a small business it can be hard to attract traditional investors, according to the Center for Venture Research and the US Small Business Administration only .05% of startups are funded by Venture Capitals, less than 1% by Angel Investors, and 1.43% by Banks. In this grim-looking scenario, equity crowdfunding appears as a perfect solution for companies that are looking to raise capital and that have already achieved social and potential proof of their success, incentivizing investors with the opportunity to own a small piece of the company before it grows.


With this equity crowdfunding, companies are able to raise capital without the need to take on new debts. Instead of taking a loan or hoping to attract the investment of a big player, equity crowdfunding is a model that combines smaller sums of money from a larger number of investors. If you’re thinking that this sounds like shares on a stock exchange, then you’re on the right track, and similarly to stocks, there are rules that are needed to be followed as well so that both parties are safe.


Rules of Equity

All equity crowdfunding is regulated by the federal government through the U.S. Securities and Exchange Commission (SEC), that’s why they are sometimes called Regulation Crowdfunding, and should follow the following guidelines:


  • Require all equity crowdfunding transactions to take place online through an SEC-registered intermediary, either a broker-dealer or a funding portal;
  • Companies can only raise up to $5 million through this method per year;
  • Limit the amount individual non-accredited investors can invest in a year;
  • Require disclosure of information in filings with the Commission and to investors and the intermediary facilitating the offering


Choosing Equity Crowdfunding

All investments come with a risk, and that’s why it’s important to do your own research and not follow advice blindly. Equity crowdfunding is no different and while the data offered here is just an introduction, it can be a nice starting point.

Aside from these points, equity crowdfunding also generates a greater degree of personal satisfaction in investors when compared to investing in a large company. This happens because there’s an opportunity on equity to focus on ideas, business, and projects that resonate with the beliefs of the investor.

It’s also important to note that as with all investments, there are risks, such as the long period of waiting before returning profit for their funds that can happen. The same SEC rules that are in place to prevent ill-intended businesses from luring unsuspecting investors can also limit the amount one can invest in a great opportunity. Virtual threats can’t be overlooked these days, from direct attacks to fishing and scams, it’s fundamental to research not only the project one wishes to invest in but also the platform where it’s hosted.


That being said, the chance to obtain huge returns, invest like accredited investors, making a real difference in a project is something that gathers a lot of attention from investors. The opportunity to be a part of an idea that one truly believes in, an idea such as Gameflip.


Become a part of Gameflip now!

Gameflip is launching its equity crowdfunding campaign on StartEngine and we’re really proud of it! This is a chance for everyone to invest and own a part of our company. With your support and belief in us and with our passionate and experienced team, we can continue to change the gaming industry and power digital commerce.


Gameflip is a flexible marketplace, offering a safe and secure space for more than 6 million gamers to trade their digital assets. We believe that the future of gaming is transparent ownership and unrestricted tradeability, and we’re looking to stake our claim in the blockchain ecosystem to make this vision a reality.


The strong traction we had so far is proof that our vision is shared by many. With over $140 million in sales, more than 40 million items listed on our platform, 3 million app downloads, and $10 million raised from Silicon Valley VCs!


This is the best time to invest in this market, with the global games industry projected to grow to $204B by 2023, with $2.5B invested into blockchain gaming start-ups just in Q1 2022, and major companies, from gaming to fashion, are pointing out blockchain-based games as part of their business plans for the future.


The team on Gameflip previously built and sold their games publishing business, Aerie Games, and has partnered with Marvel and Ubisoft to develop several top mobile games. We are experienced, driven by innovation, and our love for all things in the gaming universe.


Know the platform: StartEngine

StartEngine is a platform that helps businesses acquire the capital they need in order to build and grow their companies. With more than $600M raised so far in over 500 offerings that were funded by more than 760,000 prospective investors, it’s safe to say that StartEngine is leading the industry with more companies helped via Regulation Crowdfunding and Regulation A+ than any other platform.


Not only do they provide a platform for crowdfunding, but also provide a team with experience in legal, financial, and marketing technicalities ready to assist on behalf of companies at any moment. Their platform is safe, secure, and modern, allowing companies to raise their funds and then provide their shareholders with the opportunity to trade, all on the same website. Their leadership has a proven track record, Co-Founder and CEO Howard Marks previously co-founded Activision, one of the largest gaming companies in the world, and Strategic Advisor Kevin O´Leary, or “Mr.Wonderful”, is a renowned name in the investor community.


We at Gameflip had no doubt that StartEngine was the ideal partner for this moment and now we are joining hands in order to provide users with the opportunity to invest in the future of gaming, by owning a part of Gameflip.


Curious about StartEngine? Check them out Here or read their Investor FAQ.


No time like the present

Want to learn more about this opportunity? We prepared a page just for you, click here!