This is the first I've heard about it, other than hearing about the US being petitioned to loosen some of the restrictions on startup investing. After the fund raising offering closes, the company you invested in writes your name down on their capitalization table, and startengine is out of it.
Have a look at their investor FAQ's. Under
Can I sell my shares? they say this:
Once the live offering has closed, you may choose how to handle your shares. You will be introduced to the company’s selected transfer agent, which is the cap table management service, who will be responsible for the transfer of your shares after the close of the offering.
Important note: there is not currently an established secondary market for shares sold on StartEngine, though we are building a trading platform where investors can buy and sell securities that will launch, pending our registration as a broker-dealer and ATS (Alternative Trading System) with the SEC and FINRA.
https://www.startengine.com/investor-faq?utm_source=startengine&utm_medium=blog&utm_campaign=BlogFooterThe important note would give me pause. You won't be able to move your investment from company 1 to company 2 without first contacting company 1 to obtain your pay out, and then investing in company 2 thru startengine. This would be a pain to chase down for $100 here and $500 there.
