Trenton, NJ – Legislation that would change New Jersey laws and regulations to help businesses take advantage of crowdfunding was released by the Senate Commerce Committee on Monday. Specifically, S-712/A-2073 would provide exemptions from registration with the NJ Bureau of Securities for companies that want to offer intrastate crowdfunding investment opportunities. The total investment cannot exceed $1 million, and the investment from any single purchaser is capped at $5,000.
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.
What It Means:
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 for raising funds and starting a business.
When entrepreneurs have a solid, complex business plan, they have the option of pursuing crowdfunding investing opportunity. 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, http://njbmagazine.com/trenton-talk/getting-started-in-crowdfunding/
What’s Next:
The bill is now awaiting a vote in the Senate. The bill passed the Assembly floor in March.
What It Means:
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 for raising funds and starting a business.
When entrepreneurs have a solid, complex business plan, they have the option of pursuing crowdfunding investing opportunity. 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, http://njbmagazine.com/trenton-talk/getting-started-in-crowdfunding/
What’s Next:
The bill is now awaiting a vote in the Senate. The bill passed the Assembly floor in March.
