Samstag, 4. Mai 2013

North Carolina Approach To Eqity Crowdfunding

The North Carolina approach to equity crowdfunding has been called brilliant and clever.

The North Carolina JOBS Act has a number of provisions that allow the state’s small businesses to raise money through crowdfunding:

  • The issuer must be a North Carolina business.
  • The investor must be a North Carolina resident.
  • Fundraising Cap: Within a 12-month period issuers may raise up to $1 million without audited financials, or $2 million with audited financials.
  • Investor Cap: Investors may invest no more than $2,000 each, unless they are accredited.
  • Intermediaries: Issuers may use a professional crowdfunding platform, but it is not required.
  • Reporting: Quarterly reports discussing management compensation, operating results, and financial condition must be provided to all investors.

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