The Intrastate crowdfunding movement is expanding so quickly it is becoming increasingly hard to stay current. Last year in June, Vermont passed an online investing bill, named “Vermont Small Business Offering Exemption” (VSBOE) which allows local companies to raise capital from resident investors through Vermont crowdfunding.
Vermont crowdfunding limitations include rules that investors have to be resident in the state of Vermont and cannot invest more than $10,000 per offering unless they are accredited investors, in which case no limit is set. Issuers must to be companies organized in Vermont and they cannot raise more than $2 million. The local authority makes a distinction between those issuers seeking between $1 and $2 million and those raising less than $1 million. The former have to disclose audited financial statements, while the latter’s level of disclosure depends on the operational history of the company and the nature of the fund raise.
Furthermore the VSBOE allows advertising of the offering via social media, provided the communication clearly states that the investment opportunity is open only to investors resident in Vermont. Vermont is one of the 20 states which have implemented online investing rules, of which we take a more in depth overview in out first US Intrastate Crowdfunding regulations Report.
Review the current Vermont Crowdfunding Exemption:
Here are just a few features for Vermont 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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