 | New Jersey is one step closer to opening online investments also to retail investors, through the proposed interstate regulation for securities crowdfunding. In fact, the drafted rules, backed by Senator Kyrillos back in 2013, got the approval of the Assembly and now awaits the sign off the State’s Governor. |
Once the rules are signed by the Governor, it will be possible to make online capital offerings to the general public and raise a maximum of $1,000,000. Unaccredited investors will be allowed to invest up to $5,000 of their savings in each offering. Like in the case of all other intrastate crowdfunding regulations, the solicitation of capital can be conducted only by companies incorporated in New Jersey and can be directed only to State residents.
This regulation would represent a breath of fresh air to New Jersey’s SMEs which would have at hand another finance tool to collect capital. The Senator behind the proposed bill commented: “Crowdfunding will level the playing field for future employers, giving those without access to Wall Street a chance to gain startup capital quickly and grow their business with the support of the community”.
After the Governor’s sign off, New Jersey would join more than other 20 US states which adopted in the past couple of years intrastate crowdfunding rules. At the beginning of June, Crowd Valley published a research summarizing all the intrastate legal frameworks for intrastate crowdfunding. If you want to know more, you can request the paper here.
This regulation would represent a breath of fresh air to New Jersey’s SMEs which would have at hand another finance tool to collect capital. The Senator behind the proposed bill commented: “Crowdfunding will level the playing field for future employers, giving those without access to Wall Street a chance to gain startup capital quickly and grow their business with the support of the community”.
After the Governor’s sign off, New Jersey would join more than other 20 US states which adopted in the past couple of years intrastate crowdfunding rules. At the beginning of June, Crowd Valley published a research summarizing all the intrastate legal frameworks for intrastate crowdfunding. If you want to know more, you can request the paper here.
 | 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. |
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