Crowdfunding Growing in the States

hands putting coins in piggy bank
As federal equity crowdfunding legislation languishes on Capitol Hill, a growing number of states have pressed forward with their own equity crowdfunding legislation. States where equity crowdfunding legislation has been passed or is likely to be passed very soon include North Carolina, Georgia, Kansas, Wisconsin, Washington and Michigan.

Equity-based crowdfunding is where an individual invests into a company and in exchange becomes an owner of a percentage of the company. This differs from donation-based crowdfunding, where an individual receives a small gift in exchange for a financial donation, which has become popular on sites including Kickstarter and Indiegogo.

Historically, only accredited investors have been able to invest. The Jumpstart Our Business Startups Act, signed into law in April of 2012, made it legal for even non-accredited investors to participate in equity crowdfunding.

About Douglas Slain

Doug received a JD from Stanford Law School, a MA from the University of Chicago, and a BA from DePauw University (Phi Beta Kappa). After practicing real estate and finance law at then Pillsbury, Madison & Sutro, he founded four national monthly law reporting titles now owned by Thomson-Reuters. He served two consecutive terms as chairman of the American Bar Association’s General Practice section’s Professional Responsibility Committee. Slain was an ABA-appointed rule of law consultant to the Ministry of Economy for the Republic of Latvia as its secured transactions adviser. He taught briefly at Stanford Law School as an adjunct clinical law professor. Slain has been the managing partner of Private Placement Advisors since August 2009. In January 2013 he founded Outliers Network.

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