At the beginning of 2015, Massachusetts released and immediately enacted a regulation for intrastate crowdfunding as an “emergency measure” to encourage access to finance for SMEs. After almost two months, the Massachusetts Securities Division has published a call for feedback from all interested stakeholders on the enacted rules.
- Is the geographical limitation to the state of Massachusetts too restrictive? Should the Securities Division consider adopting rules to facilitate offerings made in more than one state?
- Should the Exemption be available for other forms of securities beyond debt and equity?
- Are the caps on investments (i.e. $2000 or 5% of their income or net worth) and the maximum amount companies can raise (i.e. $1 million or $2 million if the company has undergone a financial audit) offering sufficient protection to non accredited investors?
- Are the specific disclosure requirements for fundraisers sufficient to protect investors’ interests in crowdfunding transactions?
- Given that the current rules do not require the use of a crowdfunding portal to offer and sell crowdfunded securities, which can now be done through an authorized broker-dealer, should the Crowdfunding Exemption extends this possibility to online investing portals?
Alois, JD (2015). Call for Comments: Massachusetts Poses 15 Questions on State Crowdfunding Exemption. Crowdfundinsider
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.