Follow us on
Difitek
  • News
  • What We Offer
  • Contact Us
  • Visit our Site

Colorado: Another Step towards Allowing Online Investing

4/13/2015

 
Immagine
Colorado’s Senate has approved the bill for intrastate crowdfunding that was proposed last February. The rules are now waiting for the signature of the State’s Governor to be then officially enacted. The proposed legislation would allow local companies to raise up to $1 millions unless  they submit audited financial statements to the securities commissioner, in which case the cap is $2 million.


Investors will be allowed to  invest $5,000 per project, unless they are accredited investors in which case the aforementioned cap is not valid.

With regards to intermediary platforms, the legislation forbids them to offer investment advice or handle investor funds or securities. Also, their compensation must be in the form of either a fixed amount for each offering or a variable amount based on the length of time that the securities are offered by the online intermediary, or a combination of the fixed and variable amounts.They also need to keep and present records of securities transactions in case of inspection by the division of securities.

Once the Governor signs off the rules, Colorado will join about 15 other States which in the last two years allowed intrastate crowd investing. Despite Regulation A+ being recently approved, the State’s governing bodies will continue putting effort and dedicating attention to intrastate crowdfunding which means they are still uncertain of  the effects Regulation A+ will have on this new market. Although Regulation A+ has  a great potential to impact the US capital market, some experts say the compliance procedure for Regulation A+ is still too burdensome for smaller companies and only  Title III of the JOBS Act will improve the situation. Nevertheless, we will be able to get a better understanding of how the market reacts to Regulation A+ in a few months, after it has been enacted and used by a good number of US companies.

References

Yoshimura, M. (2015). Colorado Votes Yes to Expand Crowdfunding. CrowdfundInsider.

Immagine
About the author - Irene Tordera

Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives.
During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem.




Comments are closed.

    RSS Feed

       

    Categories

    All
    All Sectors
    Americas
    API
    Asia
    Australasia
    Clean Energy
    Crowd Valley
    CTO Blog
    Difitek
    Equity Investment
    Europe
    Events
    Expert Analysis
    Fintech
    Global
    Interview
    Lending
    Local Funding Network
    Marketing
    Market Watch
    Oceania
    Platform Updates
    Presentations
    Press Release
    Real Estate
    Regulations
    Russia
    Social Capital
    Webinar

Back to Difitek website


Copyright 2018 Crowd Valley Inc. 
All Rights Reserved.

Crowd Valley does not engage in the offer, sale or transfer of securities and securities may not be offered, sold or transferred via this website. Securities may not be offered or sold in the United States absent (i) registration under the U.S. Securities Act of 1933, as amended (the Securities Act) or (ii) an available exemption from registration under the Securities Act. Please consult legal counsel in the appropriate jurisdiction before offering, selling or buying securities as registration under the Securities Act or similar state legislation may be required.

Please note that the provision of the information on this website does not create and is not intended to create a relationship between Crowd Valley Inc. and any other person. You are not and should not regard yourself as being a client or customer of Crowd Valley Inc. and must not expect Crowd Valley Inc. to have any duties or responsibilities to you, act for you or your clients, or be responsible for providing protections afforded to customers or yourselves or be responsible for advising you in any respect.