Crowdfunding Platform StartEngine Targets $46 Million Raise To Grow Its Collectibles Exchange

Pat Maio
Pat Maio has held various reporting and editorial management positions over the past 25 years, having specialized in business and government reporting. He has held reporting jobs with the San Diego Union-Tribune, Orange County Register, Dow Jones News and other newspapers in Ohio, West Virginia, Maryland and Washington, D.C.
Crowdfunding Platform StartEngine Targets $46 Million Raise To Grow Its Collectibles Exchange

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Crowdfunding platform StartEngine is aiming to raise $46 million to fund the growth of its collectibles trading exchange and help private startups find fresh fundraising.

Since launching in 2014, Burbank-based StartEngine has helped startups raise over $500 million from roughly 760,000 investors across more than 500 offerings, according to the company. As well as enabling investors to buy stakes in businesses, it also operates a collectibles platform allowing them to invest in everything from artwork to vintage comic books.


StartEngine was founded by Howard Marks, who in 1991 helped resuscitate a struggling video game developer called Activision alongside his college roommate Bobby Kotick. Marks left Activision in 1997, around the time that the Santa Monica-based company went on an acquisition spree that rapidly grew its business and eventually resulted in its becoming Activision Blizzard in 2008. The controversial Kotick continues to run Activision Blizzard as CEO to this day and set up its pending $69 billion acquisition by Microsoft.

\u200bHoward Marks, StartEngine Founder and CEO

Howard Marks, StartEngine Founder and CEO

Courtesy of StartEngine

“I have one big hit under my belt,” the 59-year-old Marks quipped about Activision. He believes he’s got a second home run on deck with StartEngine.

StartEngine is currently crowdfunding for the likes of Legion M, a Century City-based production company backed by “Star Trek” actor William Shatner that’s looking to raise $3.85 million in financing, and Sugarfina, an El Segundo-based candy boutique seeking to raise $25 million.

In addition to purchasing shares in private companies, investors on the platform also can buy and sell fractional shares in collectible items like fine art, vintage wines and sports trading cards. In one ongoing offering, the unidentified owner of one of Andy Warhol’s Marilyn Monroe lithographs has raised $302,000 from nearly 300 investors, who each pitched in with a minimum investment of $500.

While still a small fraction of the overall private capital market, the equity crowdfunding market has grown considerably in recent years. According to crowdfunding consulting firm Crowdfund Capital Advisors, capital commitments to crowdfunded issuers climbed 110% last year to $502 million—up from $239 million in 2020 and $135 million in 2019. StartEngine’s competitors in the space include WeFunder, SeedInvest, Republic and MicroVentures.

StartEngine collectibles such as art, wine and trading cards.StartEngine collectibles such as art, wine and trading cards.Courtesy of StartEngine

The trend has its roots in the federal Jumpstart Our Business Startups Act, or JOBS Act, of 2012. The law opened the door for ordinary people without broker credentials to buy equity stakes in startups—making it easier for businesses to use crowdfunding to get off the ground, instead of having to lure larger checks out of venture capitalists or borrow money from lenders.

Marks said that the crowdfunding rules implemented through the JOBS Act were the catalyst behind the formation of his company.

“I decided that this is the right framework,” he told dot.LA. “When I started Activision, everybody said video games are dead—Atari went out of business, right? I didn’t believe what people told me.”

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NASA’s JPL Receives Billions to Begin Understanding Our Solar System

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College and previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

NASA’s JPL Receives Billions to Begin Understanding Our Solar System
Evan Xie

NASA’s footprint in California is growing as the agency prepares for Congress to approve its proposed 2024 budget.

The overall NASA budget swelled 6% from the prior year, JPL deputy director Larry James told dot.LA. He added he sees that as a continuation of the last two presidential administrations’ focus on modernizing and bolstering the nation’s space program.

The money goes largely to existing NASA centers in California, including the Pasadena-based Jet Propulsion Laboratory run with Caltech, Ames Research Center in Silicon Valley and Armstrong Flight Research Center at Edwards Air Force Base.

California remains a hotspot for NASA space activity and investment. In 2021, the agency estimated its economic output impact on the region to be around $15.2 billion. That was far more than its closest competing states, including Texas ($9.3 billion) and Maryland (roughly $8 billion). That same year, NASA reported it employed over 66,000 people in California.

“In general, Congress has been very supportive” of the JPL and NASA’s missions, James said. “It’s generally bipartisan [and] supported by both sides of the aisle. In the last few years in general NASA has been able to have increased budgets.”

There are 41 current missions run by JPL and CalTech, and another 16 scheduled for the future. James added the new budget is “an incredible support for all the missions we want to do.”

The public-private partnership between NASA and local space companies continues to evolve, and the increased budget could be a boon for LA-based developers. Numerous contractors for NASA (including CalTech, which runs the JPL), Boeing, Lockheed Martin, SpaceX and Northrop Grumman all stand to gain new contracts once the budget is finalized, partly because NASA simply needs the private industry’s help to achieve all its goals.

James said that there was only one JPL mission that wasn’t funded – a mission to send an orbital satellite to survey the surface and interior of Venus, called VERITAS.

NASA Employment and Output ImpactEvan Xie

The Moon and Mars

Much of the money earmarked in the proposed 2024 budget is for crewed missions. Overall, NASA’s asking for $8 billion from Congress to fund lunar exploration missions. As part of this, the majority is earmarked for the upcoming Artemis mission, which aims to land a woman and person of color on the Moon’s south pole.

While there’s a number of high-profile missions the JPL is working on that are focused on Mars, including Mars Sample Return project (which received $949 million in this proposed budget) and Ingenuity helicopter and Perseverance rover, JPL also received significant funding to study the Earth’s climate and behavior.

JPL also got funding for several projects to map our universe. One is the SphereX Near Earth Objects surveyor mission, the goal of which is to use telescopes to “map the entire universe,” James said, adding that the mission was fully funded.

International Space Station

NASA’s also asking for more money to maintain the International Space Station (ISS), which houses a number of projects dedicated to better understanding the Earth’s climate and behavior.

The agency requested roughly $1.3 billion to maintain the ISS. It also is increasing its investment in space flight support, in-space transportation and commercial development of low-earth orbit (LEO). “The ISS is an incredible platform for us,” James said.

James added there are multiple missions outside or on board the ISS now taking data, including EMIT, which launched in July 2022. The EMIT mission studies arid dust sources on the planet using spectroscopy. It uses that data to remodel how mineral dust movement in North and South America might affect the Earth’s temperature changes.

Another ISS mission JPL launched is called ECOSTRESS. The mission sent a thermal radiometer onto the space station in June 2018 to monitor how plants lose water through their leaves, with the goal of figuring out how the terrestrial biosphere reacts to changes in water availability. James said the plan is to “tell you the kind of foliage health around the globe” from space.

One other ISS project is called Cold Atom Lab. It is “an incredible fundamental physics machine,” James said, that’s run by “three Nobel Prize winners as principal investigators on the Space Station.” Cold Atom Lab is a physics experiment geared toward figuring out how quantum phenomena behave in space by cooling atoms with lasers to just below absolute zero degrees.

In the long term, James was optimistic NASA’s imaging projects could lead to more dramatic discoveries. Surveying the makeup of planets’ atmospheres is a project “in the astrophysics domain we’re very excited about,” James said. He added that this imaging could lead to information about life on other planets, or, at the very least, an understanding of why they’re no longer habitable.

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samsonamore@dot.la

Three Wishes Cereal Co-Founder Margaret Wishingrad on ‘The Power of No’

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

Three Wishes Cereal Co-Founder Margaret Wishingrad on ‘The Power of No’
Provided by BHE

On this episode of Behind Her Empire, Three Wishes founder and CEO Margaret Wishingrad talks about creating brand awareness and shares the key component to running a successful business.

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‘Commerce at The Curb’: LA’s Rideshare Debate Heats Up

Maylin Tu
Maylin Tu is a freelance writer who lives in L.A. She writes about scooters, bikes and micro-mobility. Find her hovering by the cheese at your next local tech mixer.
Connie Llanos, Jordan Justus and Gene Oh
Justin Janes, Vizeos Media

Three years ago, Los Angeles went into lockdown due to the COVID-19 pandemic. Now, cities like L.A. are struggling to hold on to pandemic-era transportation and infrastructure changes, like sidewalk dining and slow streets, while managing escalating demand for curb space from rideshare and delivery.

At Curbivore, a conference dedicated to “commerce at the curb” held earlier this month in downtown Los Angeles, the topic was “Grading on a Curb: The State of our Streets & Cities in 2023,” a panel moderated by Drew Grant, editorial director for dot.LA.

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