The rules drafted by New Mexico Securities Division do not bring in significant innovations compared to what has been done in other States. However, the big news is that they do not introduce any cap on investment, neither on single investments nor on total capital that can be raised. Besides this, the regulation can be summarized as follows:
- All New Mexicans are allowed to invest through securities crowdfunding portals
- All New Mexican enterprises are eligible to use securities crowdfunding as a financing tool, raising any quantity of capital
- The platforms need to be registered with New Mexico Securities Division and for broker-dealers there will be bureaucratic simplifications in the registration process
- All payments for purchases of securities offered under this exemption shall be directed to and deposited in an escrow or trust account with a bank or depository institution authorized to do business in New Mexico and subject to regulation of New Mexico and the United States. These will be kept in the escrow account until the crowdfunding campaign has met its goal.
In this way, New Mexico joins other twelve US states in what has been called the Intrastate Crowdfunding Movment. However, even though local SMEs will certainly benefit from this innovation, which will allow them to easily connect to and offer investment opportunities to the entire population of New Mexico, the real geographical barriers will only be removed when Title III will be eventually released, thus allowing securities crowdfunding to unleash its full potential.
Crowd Valley is assisting many actors in the process of setting up a new platform in order to exploit the intrastate crowdfunding exemptions today and Title III in the near future. If you are aiming to enter the securities crowdfunding market, get in touch with our team, we may have the right solution for you!
New Mexico Securities Division (2014). Drafted Intrastate Crowdfunding Regulations.
Image credit to: Jim Bowen http://bit.ly/YONdUC
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.