Latest news with #StartEngine
Fast Company
3 days ago
- Business
- Fast Company
Crowdfunded companies are ‘ghosting' investors. Changing the rules could restore trust
Imagine you invest $500 to help a startup get off the ground through investment crowdfunding. The pitch is slick, the platform feels trustworthy, and the company quickly raises its target amount from hundreds of people just like you. Then—silence. No updates, no financials, not even a thank-you. You've been ghosted—not by a friend, but by a company you helped fund. This isn't just an unlucky anecdote. It's happening across the United States. And while it may violate federal law, there's little enforcement—and virtually no consequences. Thanks to a 2012 law, startups can raise up to $5 million per year from the general public through online platforms such as Wefunder or StartEngine. The law was intended to 'democratize' investing and give regular people, not just the wealthy, a chance to back promising young companies. But there's a catch: Companies that raise money this way are required to file an annual report with the U.S. Securities and Exchange Commission and post it publicly. This report, intended to show whether the business is making progress and how it is using investor funds, is a cornerstone of accountability in the system. As a professor of business law, I wrote the book on investment crowdfunding. And in my recent research, I found that a majority of crowdfunded companies simply ignore this rule. They raise the money and go silent, leaving investors in the dark. In most cases, I suspect their silence isn't part of an elaborate con. More likely, the founders never realized they had to file, forgot about the requirement amid the chaos of running a young business, or shut down entirely. But whether it's innocent oversight or deliberate avoidance, the effect on investors is the same: no information, no accountability. This kind of vanishing act would be unthinkable for public companies listed on the stock market. But in the world of investment crowdfunding, limited oversight means that going silent, whatever the reason, is all too easy. It's not just 1 or 2 victims When startups go dark, they don't just leave their investors behind—they undermine the entire crowdfunding model. Investment crowdfunding was meant to be an accessible, transparent way to support innovation. But when companies ghost their backers, the relationship starts to look less like an investment and more like a donation. It's not just unethical—it's illegal. Federal law requires at least one annual update. But so far, enforcement has been almost nonexistent. Concerned state attorneys general have encouraged the SEC to ramp up enforcement actions. This could work in theory, but it's unrealistic in practice, given the SEC's limited resources and broad mission. If nothing changes, the crowdfunding experiment could collapse under the weight of mistrust. Incentives work—let's use them Fortunately, there's a low-cost solution. I propose that crowdfunding platforms hold back 1% of the capital raised until the company files its first required report. If it complies, it gets the funds. If not, it doesn't. It's a small but powerful incentive that could nudge companies into doing the right thing, without adding bureaucratic complexity. It's the same principle used in escrow arrangements, which are common in finance. In a home sale, for example, part of the money goes into a neutral holding account—escrow—until the seller meets certain agreed conditions. Only then is it released. Applying that approach here, a small slice of crowdfunding proceeds would stay in escrow until the company files its first annual report. No report, no release. Unfortunately, crowdfunding platforms are unlikely to adopt this voluntarily. They compete with one another for deal flow, and any rule that makes fundraising slightly harder at one platform could send startups to a rival site. However, the SEC has the legal authority to update its rules, and this change would be easy to implement—no new laws, no congressional fights, just a bit of regulatory will. I've even drafted a proposed rule, ready-made for the SEC to adopt, and published it in my recent article, 'Ghosting the Crowd.' The idea behind investment crowdfunding remains powerful: Open the door to entrepreneurship and investment for everyone. But if that door leads to silence and broken promises, trust will disappear—and with it, a promising financial innovation. A tiny tweak to the rules could restore that trust. Without it, investors will keep getting ghosted. And the market might ghost them right back.
Yahoo
6 days ago
- Business
- Yahoo
Crowdfunded companies are ‘ghosting' their investors – and getting away with it
Imagine you invest US$500 to help a startup get off the ground through investment crowdfunding. The pitch is slick, the platform feels trustworthy and the company quickly raises its target amount from hundreds of people just like you. Then – silence. No updates, no financials, not even a thank-you. You've been ghosted – not by a friend, but by a company you helped fund. This isn't just an unlucky anecdote. It's happening across the United States. And while it may violate federal law, there's little enforcement – and virtually no consequences. Thanks to a 2012 law, startups can raise up to US$5 million per year from the general public through online platforms such as Wefunder or StartEngine. The law was intended to 'democratize' investing and give regular people, not just the wealthy, a chance to back promising young companies. But there's a catch: Companies that raise money this way are required to file an annual report with the U.S. Securities and Exchange Commission and post it publicly. This report, intended to show whether the business is making progress and how it is using investor funds, is a cornerstone of accountability in the system. As a professor of business law, I wrote the book on investment crowdfunding. And in my recent research, I found that a majority of crowdfunded companies simply ignore this rule. They raise the money and go silent, leaving investors in the dark. In most cases, I suspect their silence isn't part of an elaborate con. More likely, the founders never realized they had to file, forgot about the requirement amid the chaos of running a young business, or shut down entirely. But whether it's innocent oversight or deliberate avoidance, the effect on investors is the same: no information, no accountability. This kind of vanishing act would be unthinkable for public companies listed on the stock market. But in the world of investment crowdfunding, limited oversight means that going silent, whatever the reason, is all too easy. It's not just 1 or 2 victims When startups go dark, they don't just leave their investors behind – they undermine the entire crowdfunding model. Investment crowdfunding was meant to be an accessible, transparent way to support innovation. But when companies ghost their backers, the relationship starts to look less like an investment and more like a donation. It's not just unethical – it's illegal. Federal law requires at least one annual update. But so far, enforcement has been almost nonexistent. Concerned state attorneys general have encouraged the SEC to ramp up enforcement actions. This could work in theory, but it's unrealistic in practice, given the SEC's limited resources and broad mission. If nothing changes, the crowdfunding experiment could collapse under the weight of mistrust. Incentives work − let's use them Fortunately, there's a low-cost solution. I propose that crowdfunding platforms hold back 1% of the capital raised until the company files its first required report. If it complies, it gets the funds. If not, it doesn't. It's a small but powerful incentive that could nudge companies into doing the right thing, without adding bureaucratic complexity. It's the same principle used in escrow arrangements, which are common in finance. In a home sale, for example, part of the money goes into a neutral holding account – escrow – until the seller meets certain agreed conditions. Only then is it released. Applying that approach here, a small slice of crowdfunding proceeds would stay in escrow until the company files its first annual report. No report, no release. Unfortunately, crowdfunding platforms are unlikely to adopt this voluntarily. They compete with one another for deal flow, and any rule that makes fundraising slightly harder at one platform could send startups to a rival site. However, the SEC has the legal authority to update its rules, and this change would be easy to implement – no new laws, no congressional fights, just a bit of regulatory will. I've even drafted a proposed rule, ready-made for the SEC to adopt, and published it in my recent article, Ghosting the Crowd. The idea behind investment crowdfunding remains powerful: Open the door to entrepreneurship and investment for everyone. But if that door leads to silence and broken promises, trust will disappear – and with it, a promising financial innovation. A tiny tweak to the rules could restore that trust. Without it, investors will keep getting ghosted. And the market might ghost them right back. Andrew A. Schwartz does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Upturn
03-06-2025
- Business
- Business Upturn
OUSIA Labs Launches Capital Raise on StartEngine to Democratize CO₂ Botanical Extraction for the Home
Loveland, Colorado, June 03, 2025 (GLOBE NEWSWIRE) — OUSIA Labs, a pioneering natural products technology company, has officially launched its capital raise on StartEngine, aiming to raise $128,000 in its first phase. The company is offering early investors a stake in what could be the future of at-home botanical oil extraction, a lab-grade CO₂ system engineered into a compact consumer appliance. Advertisement OUSIA Labs Led by duo David and Gary Ross, OUSIA Labs was founded in 2020 with the mission of bringing pure, solvent-free extraction to everyday people. Now, with a patented appliance, pre-sold units in hand, and strategic partnerships with global distributors, the company is turning to equity crowdfunding to scale. 'We've been well vetted to get on StartEngine, and we're excited to invite investors to join this next chapter,' said David, COO and co-inventor. 'Our early traction shows the appetite for natural, at-home wellness products made with transparency and purity.' The flagship product, the OUSIA Fountain, is one of the first compact CO₂ extraction systems designed for home use. Traditional CO₂ extraction methods, often used in commercial labs, are generally cost-prohibitive and technically complex for everyday consumers. OUSIA has changed that by delivering a safe, affordable, and plug-and-play appliance for personal use. From essential oils and culinary extracts to DIY cosmetics and botanical tinctures, the OUSIA Fountain empowers consumers to control the purity, potency, and origin of their ingredients. For example, rosemary extract, which typically sells for maybe $30 for just 15ml of a diluted product, can be made for a fraction of the price using fresh rosemary. OUSIA's device yields high-purity oils with no need for harmful solvents or additives. 'The health-conscious consumer is growing more aware of what goes into their food and wellness products,' said David. 'CO₂ extraction is the gold standard for purity, and we've made it accessible in a way that's never been done before.' To date, over a hundred units have been pre-sold, and the company is actively shipping. OUSIA's technology has attracted interest from global distributors and culinary innovators, including those in the DIY soda and sous-vide industries, who value precise, potent, and controllable botanical flavoring. OUSIA operates in the $7.72 billion botanical extraction market, but the broader natural products segment, including gourmet food, wellness, cosmetics, and DIY tinctures, is approaching $11.63 billion globally. Use cases fall into three main consumer categories: culinary & beverages, cosmetics & bath, and wellness & tinctures. Early customers include artisan producers, influencers, and small businesses, such as a lavender farmer in California who uses the OUSIA Fountain to create pure oils for soap-making. In parallel, food tech companies are integrating the appliance into slow-cooking systems like sous-vide to create consistent, chef-grade herbal infusions. OUSIA Labs is currently raising $128,000 in its first round on StartEngine, a move that positions the company for deeper marketing and broader reach through the platform's venture portfolio. StartEngine investors eligible for the Venture Club will receive a 10% bonus in shares, adding further incentive for early support. For example, a $556 investment would yield 110 shares rather than 100, enhancing value for early backers. Additional loyalty and time-based bonuses may also apply, offering multiple ways for investors to gain preferred access and equity advantages. 'Anyone passionate about clean living, health and wellness, or small appliances has the opportunity to be part of a technology that's changing the way we interact with botanicals,' David concluded. There is no offer to sell, no solicitation of an offer to buy, and no recommendation of any security or any other product or service in this article. Moreover, nothing contained in this should be construed as a recommendation to buy, sell, or hold any investment or security, or to engage in any investment strategy or transaction. It is your responsibility to determine whether any investment, investment strategy, security, or related transaction is appropriate for you based on your investment objectives, financial circumstances, and risk tolerance. Consult your business advisor, attorney, or tax advisor regarding your specific business, legal, or tax situation. Media Contact Name: Conal Rosanbaulm Email: [email protected] Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same.
Yahoo
03-06-2025
- Business
- Yahoo
OUSIA Labs Launches Capital Raise on StartEngine to Democratize CO₂ Botanical Extraction for the Home
CO₂ based botanical extraction appliance for consumers, OUSIA Labs, seeks the first phase of funding on StartEngine. Loveland, Colorado, June 03, 2025 (GLOBE NEWSWIRE) -- OUSIA Labs, a pioneering natural products technology company, has officially launched its capital raise on StartEngine, aiming to raise $128,000 in its first phase. The company is offering early investors a stake in what could be the future of at-home botanical oil extraction, a lab-grade CO₂ system engineered into a compact consumer appliance. OUSIA Labs Led by duo David and Gary Ross, OUSIA Labs was founded in 2020 with the mission of bringing pure, solvent-free extraction to everyday people. Now, with a patented appliance, pre-sold units in hand, and strategic partnerships with global distributors, the company is turning to equity crowdfunding to scale. 'We've been well vetted to get on StartEngine, and we're excited to invite investors to join this next chapter,' said David, COO and co-inventor. 'Our early traction shows the appetite for natural, at-home wellness products made with transparency and purity.' The flagship product, the OUSIA Fountain, is one of the first compact CO₂ extraction systems designed for home use. Traditional CO₂ extraction methods, often used in commercial labs, are generally cost-prohibitive and technically complex for everyday consumers. OUSIA has changed that by delivering a safe, affordable, and plug-and-play appliance for personal use. From essential oils and culinary extracts to DIY cosmetics and botanical tinctures, the OUSIA Fountain empowers consumers to control the purity, potency, and origin of their ingredients. For example, rosemary extract, which typically sells for maybe $30 for just 15ml of a diluted product, can be made for a fraction of the price using fresh rosemary. OUSIA's device yields high-purity oils with no need for harmful solvents or additives. 'The health-conscious consumer is growing more aware of what goes into their food and wellness products,' said David. 'CO₂ extraction is the gold standard for purity, and we've made it accessible in a way that's never been done before.' To date, over a hundred units have been pre-sold, and the company is actively shipping. OUSIA's technology has attracted interest from global distributors and culinary innovators, including those in the DIY soda and sous-vide industries, who value precise, potent, and controllable botanical flavoring. OUSIA operates in the $7.72 billion botanical extraction market, but the broader natural products segment, including gourmet food, wellness, cosmetics, and DIY tinctures, is approaching $11.63 billion globally. Use cases fall into three main consumer categories: culinary & beverages, cosmetics & bath, and wellness & tinctures. Early customers include artisan producers, influencers, and small businesses, such as a lavender farmer in California who uses the OUSIA Fountain to create pure oils for soap-making. In parallel, food tech companies are integrating the appliance into slow-cooking systems like sous-vide to create consistent, chef-grade herbal infusions. OUSIA Labs is currently raising $128,000 in its first round on StartEngine, a move that positions the company for deeper marketing and broader reach through the platform's venture portfolio. StartEngine investors eligible for the Venture Club will receive a 10% bonus in shares, adding further incentive for early support. For example, a $556 investment would yield 110 shares rather than 100, enhancing value for early backers. Additional loyalty and time-based bonuses may also apply, offering multiple ways for investors to gain preferred access and equity advantages. 'Anyone passionate about clean living, health and wellness, or small appliances has the opportunity to be part of a technology that's changing the way we interact with botanicals,' David concluded. There is no offer to sell, no solicitation of an offer to buy, and no recommendation of any security or any other product or service in this article. Moreover, nothing contained in this should be construed as a recommendation to buy, sell, or hold any investment or security, or to engage in any investment strategy or transaction. It is your responsibility to determine whether any investment, investment strategy, security, or related transaction is appropriate for you based on your investment objectives, financial circumstances, and risk tolerance. Consult your business advisor, attorney, or tax advisor regarding your specific business, legal, or tax situation. Media Contact Name: Conal Rosanbaulm Email: conal@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
AsyncHealth launches Crowdfunding Campaign on StartEngine using Artificial Intelligence to Revolutionize Mental Health Care
AsyncHealth has a clinician-built platform that uses AI to streamline the delivery of mental health care, increasing patient access and saving clinician time. SACRAMENTO, Calif., May 28, 2025 /PRNewswire/ -- AsyncHealth, a company that has developed a cutting-edge platform that leverages AI agents and scribes to streamline mental health care, is excited to announce the launch of its crowdfunding campaign on StartEngine. This campaign aims to raise funds to further develop and expand AsyncHealth's innovative solutions, making mental health care more accessible, efficient, and effective for both providers and patients. Async is a clinician-built platform that uses AI to streamline the delivery of mental health care. The platform's virtual interviewer assistants handle patient intake, triage, and progress monitoring, while AI scribes generate the required documentation, saving providers more than 50% of their time. This enables better care, less burnout, and greater flexibility for clinicians. For patients, AsyncHealth's asynchronous approach removes the barriers of traditional appointment scheduling, improves access to care, and enhances continuity of care. "We are thrilled to launch our crowdfunding campaign on StartEngine," said Peter Yellowlees, MD, CEO of AsyncHealth. "Our mission is to revolutionize mental health care by leveraging AI to create a more responsive and supportive care experience. With the support of our investors, we can scale our impact and make a substantial difference in the lives of both providers and patients." AsyncHealth has already raised nearly $200,000 in the first two weeks of the campaign, demonstrating strong support from mental health providers, patients and early supporters who believe in the company's mission. The funds raised will be used to further develop the platform, enhance its features, and expand its reach to more providers and patients. Potential investors can learn more about the campaign and invest in AsyncHealth by visiting the StartEngine campaign page: The campaign offers various investment tiers and perks for investors, making it an attractive opportunity for those looking to support innovative solutions in mental health care. In addition to the crowdfunding campaign, AsyncHealth will be hosting a series of interactive webinars where the team will share more about the platform, growth plans, and answer questions live. Interested individuals can register for the webinars or reach out to the team at founders@ for more information. AsyncHealth's leadership team includes internationally recognized telepsychiatry expert Peter Yellowlees, MD, co-founder of a telehealth company sold to a Fortune 500 firm, and former president of the American Telemedicine Association; Steven Chan, MD, MBA, CTO, a triple board-certified psychiatrist and former Microsoft engineer with deep expertise in health informatics; and Robert Gregoire, CBO, a serial entrepreneur and corporate executive with extensive experience in developing and exiting successful ventures. For more information about AsyncHealth ( and the crowdfunding campaign, please visit Disclaimer: This Reg CF offering is made available through StartEngine Primary LLC, member FINRA/SIPC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment. About Asynchealth Inc AsyncHealth launches crowdfunding campaign on StartEngine using AI to revolutionize mental health care Press Contact:Peter Yellowlees916-833-1874http:// View original content to download multimedia: SOURCE Asynchealth Inc Sign in to access your portfolio
