Crowdfunding has become an operative word in business communities over the last several years. There are an estimated 200 crowdfunding websites in the United States, and between 1500 and 2000 globally. Across the world crowdfunding sites are estimated to have raised more than $5 billion in 2014.
Practices now allowed in Maine crowdfunding are very different from those allowed by donation crowdfunding sites. In those cases, entrepreneurs are able to raise money from people without offering them anything in return, although in practice they often offer gifts like a T-shirt, a name on a brick, or an invitation to an exclusive VIP launch party, depending on the amount donated.
Under the Maine crowdfunding law, businesses can raise capital by selling equity or debt in their companies to Maine residents. The exchange of money for equity or debt requires oversight and includes restrictions. Maine’s new bill limits the amount any one resident can invest to $5,000 and limits companies from raising more than $1 million annually. In addition, convicted felons or other bad actors are not allowed to offer equity in their businesses via Maine crowdfunding.
Around 17 other states have passed laws that allow businesses to crowdfund investment from the residents. Those state laws specify that businesses can only offer shares to investors if they are current residents. Maine crowdfunding is different in that it is the first state to allow businesses to offer shares in their companies to investors no matter where they reside.
Review the current Maine Crowdfunding Exemption:
Here are just a few features for Maine 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
Get a demo Pricing Learn More