While U.S. businesses anxiously wait for federal Title III crowdfunding rules to be completed, Wisconsin is one of the first individual states to offer “intrastate” crowdfunding, allowing small businesses to offer equity stake in their company online through Wisconsin crowdfunding websites and receive necessary working capital that has previously has been unavailable to them.
The Wisconsin crowdfunding bill took effect in June of 2014. The bill, named the CASE (crowdfunding and securities exemptions) for Jobs Act, changes Wisconsin’s securities registration exemptions, updating the state’s outdated securities law into the 21st century.
CASE seems to take a shot at the federal Jobs Act passed in 2012. That law is meant to reform federal securities law to allow businesses to attract investments from accredited and non-accredited investors by way of internet crowdfunding platforms. However, the federal crowdfunding rules have been delayed by years at this point.
“Where the federal government has delayed, Wisconsin has acted,” said Rep. David Craig, (R-Vernon), one of the bill’s lead co-authors, in a prepared statement. “Where other states have failed to allow small business to harness the power of the Internet, Wisconsin has embraced it. Sen. (Leah) Vukmir, Rep. (Chad) Weininger and I have put our joint time and efforts into crafting this important legislation, and with the overwhelming support of the Legislature we look forward to Gov. Walker signing this important jobs bill in the near future.”
“By updating the rules for investors, we will allow Wisconsin entrepreneurs to combine concepts and capital to create thriving companies, family-supporting jobs and a vibrant state economy that will benefit all of Wisconsin,” said Vukmir, (R-Wauwatosa), in a prepared statement.
The Wisconsin crowdfunding law allows businesses to raise up to $2 million, Through non-accredited investors investing up to $10,000 each.
Review the current Wisconsin Crowdfunding Exemption:
So how does CrowdForce help you with your intrastate equity crowdfunding needs? Since 2012, we have offered the most secure and flexible white label crowdfunding software on the market! If you are planning to operate a portal for Wisconsin equity crowdfunding under the state exemption, follow the “Learn More” link to find out about all product details, and get in touch with a sales agent to get more information on how our software works for Colorado equity crowdfunding. We have launched portals for partners in Indiana, Texas and Alabama in 2014 and are the top choice for cost effectiveness, and the quickest launch times.
Here are just a few features for instrastate equity 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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