Raising capital is an essential part of a founder’s journey, and until recently this process has been rife with barriers due to legal restrictions since the Securities Act of 1933. Enter today’s guest, Howard Marks, who has been working to democratize the capital raising space in his capacity as CEO and founder of StartEngine. Howard’s firm helps startups raise capital more easily by utilizing recent Reg D, Reg Crowdfunding, and Reg A Plus legislation, thereby bringing them closer to achieving their dreams. We kick off our chat with Howard hearing about his fundamental mission to help all entrepreneurs succeed and the amazing updates at StartEngine since the last time he came on the show, such as how they have raised over 150 million dollars so far! He talks about the extremely low price point StartEngine sets funding barrier at, before sharing the three things that any company seeking funding should be doing. We get into some of the legalities around capital raising in the history of the US, and Howard reiterates how recent lifts on restrictions is allowing StartEngine to remove the barriers to deal flow for angels. He shares some of the ways he vets new companies looking to raise capital and also talks about common mistakes entrepreneurs make during this process. Our conversation digs a little deeper into Howard’s philosophy of setting an ‘impossibly’ high goal for his company, and he explains how it all fits into the foundational ideas of the American Dream. Our chat winds down with some of Howards most favorite books, useful tools, and an argument for why Tesla is such an inspiring company. Make sure not to miss this great conversation about new developments in the capital raising space!
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Eric Siu (@ericosiu) is the CEO at Single Grain, a digital marketing agency that focuses on paid advertising and content marketing. He contributes regularly to Entrepreneur Magazine, Fast Company, Forbes and more.