The Hoosier state is another early adopter of crowdfunding, setting the tone for the rest of the states and their regulations. Governor Mike Pence signed into law Bill 375 in 2014, the state exemption to allow investment Indiana crowdfunding for companies and investors located within the state.
A crucial part of the legislative agenda, the bill was created recognizing the importance of small businesses in spring economic growth and opportunity for Indiana. While the governor wanted to first make it simple for companies who will represent 1000s of jobs to locate in his state, he also recognized that small businesses are the economic engine that powers the economy of the state, and created the Indiana crowdfunding regulations with them in mind.
Adam Berry, Regulatory Policy Director presented options to his various staff members, along with the Governor, and they quickly accepted the concept. They reviewed legislation other states, such as Georgia and Kansas, had passed, to help form their model. The concept of internet based equity Indiana crowdfunding was launched.
The process included close collaboration with the Secretary of State and the state securities regulators. The bill went through the legislative process with some minor alterations and passed unanimously through both houses.
Review the current Indiana Crowdfunding Exemption:
- See Senate Bill 375;
- See also IC 23-19-2-2(27);
- See also Emergency Rule LSA Document #14-248(E);
- See also “Crowdfunding – Invest In Indiana.”
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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