Georgia crowdfunding established the state as the trendsetter, which other states would follow quickly, as all states seem at wit’s end waiting for stalled SEC regulations. If Georgia is a good example, it could take a while for Americans and businesses looking for capital through crowdfunding to get acclimated to the practice.
It’s been 3 years since Georgia crowdfunding to begin allowing individual residents to invest in businesses for equity and so far 35 companies have registered with the state to to give it a spin.
Since Georgia led the way, around 16 other states have passed similar exemption laws and continue to work on interstate crowdfunding regulations designed to expand crowdfunding nationwide. The slow consistent interest in Georgia crowdfunding could be a good sign that states will dictate the launch of wider crowdfunding, while the federal process is stalled.
“Like any new technology, you have early adopters who spread the word,” said Brian Dally, co-founder and CEO of real estate investment portal GroundFloor. The company, which connects investors with builders pitching specific projects, moved to Georgia from North Carolina this summer because of the state’s flexible crowdfunding rules.
Review the current Georgia Crowdfunding Exemption:
- See GA Comp. R. & Regs. 590-4-2-.08, et seq.;
- See also “Understanding the Invest Georgia Exemption“;
Here are just a few features for instrastate equity crowdfunding included in the CrowdForce platform software:
• State residency self-verification
• Driver’s license upload for verification
• Setting funding limits for non-accredited investors
• Allowing accredited investor participation
• Complete and simple document signing and management
• Integrated ACH payments
• Plug in your state escrow account
• Plugin in your broker services for accredited investments
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