Who was first to the punch? In April 2012 the US JOBS Act was signed into law, and the Securities and Exchange Commission, as of June 2015, the has not yet completed the regulations that would allow companies to raise capital on crowdfunding platforms in exchange for equity to investors. Amid speculation when the SEC will conclude its process, equity crowdfunding to non-accredited state investors is already legal under certain conditions in two states.
Substantially prior to the Jobs Act signing, in March 2011, the Invest Kansas Exemption (Kansas Crowdfunding Exemption) was passed, which allows companies to utilize Kansas crowdfunding to fundraise up to $1 million from non-accredited investors who are also average state residents.
Kansas, like most states, relies on the federal intrastate offering exemption in Section 3(a)(11) of the Securities Act of 1933—which states that a securities offering is exempt from federal registration when the issuer and all purchasers are in the same state, although there are three or four different models that they can use.
Kansas securities regulators are closer aligned to what local companies need. They can work directly with businesses with registration and exemption, and equity based Kansas crowdfunding at the state level is a great tool for Kansas business. Whether you’re a local car repair shop or an entrepreneur trying to get a new idea off the ground, it’s a great way to reach your local resident customer base.”
Review the current Kansas Crowdfunding Exemption:
Here are just a few features for Kansas 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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