Mississippi Crowdfunding Software for Web Portals

 
mississippi capitol
 
Recently the Mississippi crowdfunding bill was proposed to allow Mississippi businesses to raise capital by online crowdfunding. These new regulations are expected to become effective at the end of May 2015. Overall the regulations provide guidelines on how much a business can raise, who may invest, and how much they can contribute. The business must be a Mississippi entity and the capital raised must be held in escrow with a local bank in Mississippi. They must remain in the account until at least half of the offering amount has been secured. The business will also be required to complete an online registration form with the Secretary of State’s office.

It is important to understand that the Secretary of State will not be the one conducting the deal. The business will need to engage a registered broker-dealer, bank or website operator to design Mississippi crowdfunding web portal to solicit the offering. The web portal operator must be registered with the Mississippi Secretary of State, so the business should do its diligence to confirm that the registration is in approved. If 50 percent of the goal amount is not reached within a year, all money must be returned to investors.

Limits are as follows: For an investor whose net worth is $1 million, the investment limit is up to 5 % of their worth. If the investor’s net worth is between $1 million and $5 million, they may put up to 10 % of their worth. If an investor’s net worth is in excess $5 million, their investment amount is unlimited. Further, Mississippi securities laws state that at least 80 % of the capital must be used within the state, and 80 % of the business assets must be located in Mississippi.
 

Review the current Mississippi Crowdfunding Exemption:

 

Here are just a few features for Mississippi 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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