Some of the main aspects proposed in the intrastate crowdfunding regulation include the following:
- The issuers have to be companies registered with the Secretary of State of Oregon, with their headquarters in the state and employing less than 50 staff members.
- The investors have to be resident in Oregon and are requested to provide a proof of residency to the issuing company.
- Companies can raise up to $250,000 in a period of maximum 12 months.
- Investors are allowed to invest up to $2,500
- The issuers have to provide both the relevant authority and the interested investors a number of documents about its business model, planned activities to be conducted with the funds raised and other details in order to guarantee a certain level of transparency.
The rules were expected to enter into effect on the 2nd of January, but the local financial authority delayed the release by the end of January, in order to collect feedback from the public. The state’s stakeholders keep waiting for the rules to be published and intrastate crowdfunding to be ignited. They in fact see the great potential of this financial source for thieir SMEs: “If Oregonians invest just one percent of their combined retirement savings, that will unleash a tsunami of more than $900 million on Oregon businesses. All without a public cent.”, commented one of the movement’s representatives.
Cluverwell, W. (2015) Oregon's crowdfunding experiment is (almost) ready to launch- Portland Business Journal
Duffy, L. (2015). Crowdfunding Investments Take Shape In Oregon. OPB
New Rules for Raising Capital in Oregon. Hatch Oregon 2014
Image credit to: Ian Sane https://bitly.com/shorten/
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.