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.

More provisions and the full story on FORBES