What do Alaska, Florida, Texas and Vermont have in common? They’re among the 34 states that have passed state-based crowdfunding laws.
When it comes to crowdinvesting, most of the attention goes to the JOBS Act, the 2012 federal legislation that gave us Regulation Crowdfunding, Regulation A+ and other provisions that make it easier for small companies to raise money from individual investors through the use of crowdfunding.
But the JOBS Act isn’t the only game in town. In fact, its requirements and fees can be overkill for smaller, local businesses that have a strong local following but may not be able to (or want to) attract a national audience of investors.
For these businesses, state-based crowdfunding may be a better route.
Since 2011, 34 states and the District of Columbia have enacted or passed laws that allow investment crowdfunding within their borders. Think of them as mini JOBS Acts intended to be used only by in-state businesses raising money from in-state residents. The laws tend to be simpler and less costly than the JOBS Act, often requiring just a one or two-page form to be filed with state regulators. In some states, businesses don’t even have to use a crowdfunding portal to raise money; the offering can take place on their own web site or entirely offline.[…]
The full and original article can be viewed on Locavesting.com
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