The gates opened in 2014 for Tennessee crowdfunding meaning businesses looking to solicit capital from in-state investors online.
Supporters of Tennessee crowdfunding say it allows businesses and startups to tap a wider net in order to get the early capital to a company off the ground.
In the General Assembly this past year, state lawmakers followed up on federal actions to allow companies to raise up to $1 million per year from Tennessee investors and accept up to $10,000 from individual unaccredited investors.
Basically, the Tennessee crowdfunding bill provides companies to raise equity in Tennessee under those parameters without registering their securities with state officials.
The Tennessee legislature deliberated about the total capital businesses could raise through crowdfunding. One Senate amendment called to lower the maximum amount of yearly fundraising to $750,000 per year, and also sought to limit the amount non-accredited investors could contribute to $5,000 a year. Eventually, the Senate adopted the House’s version, including the higher caps provisions.
For Tennessee’s growing business community, some see Tennessee crowdfunding as an important way to build a concept and business model that can then be pitched to early angel investors.
Tennessee’s law large mirrors the federal guidelines. Opponents to the federal rules have questioned whether crowdfunding will actually make fundraising easier for startups, as supporters suggest.
Review the current Tennessee Crowdfunding Exemption:
Here are just a few features for Tennessee 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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