Equity “Crowdfunding” is Legal in Georgia

26 Apr

Equity crowdfunding is legal in Georgia. Yes, legal. And, it is called the Invest Georgia Exemption. This is not the JOBS ACT.  It’s better than the JOBS Act.

 On December 8, 2011, the Georgia State Securities Division promulgated new rules known as the Invest Georgia Exemption (IGE).  (This is not Georgia General Assembly legislation, nor is legislation needed.)

Here are the important links:

http://www.sos.ga.gov/securities/sec-2012-13.pdf

 http://www.sos.ga.gov/securities/GUSA/pdf%20orders/Chapter%20590-4-2%20%20Exemptions.pdf

 Here is the important information:

  • Georgia-based, private companies can sell equity (shares of stock or debt) to Georgia based non-accredited residents of Georgia.
  • For-profit Georgia companies can raise up to $1 million annually from non-accredited and accredited investors.
  • Georgia-based Companies can advertise (solicit) capital raises in Georgia to Georgia-based residents .
  • Non-accredited Georgia residents can invest up to $10,000 per company.

I have been developing a platform to allow this type of equity investing. I’m doing this a little different than other private efforts. I would like to make this a community effort. We will create a pool of equity for those that help develop the site.

Here is what we need:

-  Developers interested in creating a web-based platform to allow online equity investing for Georgia companies.

- Whippersnapper securities lawyers not afraid to venture into new territories.

- Marketers who understand social media

- Companies that have been successful raising capital on KickStarter or IndieGoGo

Want to know more? Come to the TAG Corporate Development May 15 event on Crowdfunding.

Or,

Contact me at:

knox at keithmasseypartners.com

Let’s get the ball rolling on Georgia Crowdfunding!

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10 Responses to “Equity “Crowdfunding” is Legal in Georgia”

Trackbacks/Pingbacks

  1. The Basis of Legal Crowdfunding in Georgia | Invest Georgia - May 3, 2013

    [...] week, I wrote a post about about equity crowdfunding in Georgia. It was my most widely read post and has generated numerous emails and phone calls and has caused a [...]

  2. The Early Growth of the Georgia Crowdfunding Community | Invest Georgia - July 3, 2013

    […] within Georgia to “crowdfund” Georgia-based companies by non-accredited Georgia investors here and here. If you are not yet aware of this new ability to help fund young Georgia startup […]

  3. How Market Forces are Changing Traditional Angel Investing | Invest Georgia - July 8, 2013

    […] Georgia and Kansas now have State Securities rules and regulations that allow private, for-profit companies in those respective states to raise capital through capital raises from unaccredited investors. Yes, this is state based crowdfunding and it is completely legal for both unaccredited and accredited investors. North Carolina has a bill in the NC General Assembly for legal instrastate crowdfunding in the current 2013 session–and it may pass. Other states are considering similar legislation or rules and regulations. […]

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    […] Why come to Georgia? We have friendly regulators that are innovative.  […]

  7. Crowdfunding: Will Georgia Investors Respond? | Bookkeeping Services for Greater GA 400 Corridor - August 19, 2013

    […] whether investors will respond to small company equity offerings which are now possible under Georgia’s new crowdfunding regulations.  Among several important points he makes, he notes that technology companies in particular need […]

  8. Crowdfunding: Will Georgia Investors Respond? | Bookkeeping Services for Greater Atlanta, GA - April 25, 2014

    […] whether investors will respond to small company equity offerings which are now possible under Georgia’s new crowdfunding regulations.  Among several important points he makes, he notes that technology companies in particular need […]

  9. Update on Georgia Crowdfunding | Invest Georgia - May 12, 2014

    […] progress has been made in Georgia regarding “legal” intrastate crowdfunding since I first posted about this topic a little over a year ago. Below, I’ll give a quick […]

  10. Invest Georgia - May 12, 2014

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