StartEngine Crowdfunding’s patent application, “Peer-to-peer trading with blockchain technology”, seeks to create a new way for startups to obtain investors. This patent application is part of a push to take advantage of the Jumpstart Our Business Startups (JOBS) Act, which allows companies to raise money from the general public. The JOBS Act opened up a huge space for investors, because prior to the Act only accredited investors could invest in private companies. The application, “peer-to-peer trading,” would use the blockchain to fill this space.
The application would connect smaller investors to companies that needed capital, and would cut out many of the transaction costs traditionally associated with selling securities. The advantages of using the blockchain to transfer securities are the anonymity, security, and speed that it offers, which are all superior to traditional methods.
StartEngine Crowdfunding wants to create a platform to facilitate SEC-compliant ICOs. Although StartEngine has competitors in this area, if their patent is granted, they would have a commanding advantage in the field. A reputable crypto crowdfunding platform could attract investor attention due to its stability.