To qualify, the business would have to provide a description of the company, its business plan, the name of its shareholders and its minimum offering amount. A quarterly report to the company’s investors must also be provided.
"Small, privately owned businesses would be able to raise money through crowdfunding web portals that are currently closed to them. While web sites like “Kickstarter” and “Peerbackers” are often the first to be used for launching an idea, these donation-based sites are inadequate sustaining a starting a business,” explained NJBIA's Tyler Seville, executive director of INJ. "When entrepreneurs have a solid, complex business plan, they have the option of pursuing crowdfunding investment opportunities. Equity crowdfunding initiatives have proven successful in a handful of states, including Georgia and Kansas. By simplifying regulations on intrastate crowdfunding, more small businesses have the opportunity to receive capital needed to boost their startup and encourage growth."
To learn more about how your business can start crowdfunding, click here.
The bill heads to the Governor’s desk for his signature. The bill passed the Assembly floor in March.