So what happens in North Carolina with startups looking to raise capital through crowdfunding – and will investors play – if the General Assembly embraces legislation incorporating the NC JOBS Act and sends it to Gov. Pat McCrory?

Look for deals, especially in real estate, but an investment revolution?

Nope, says Jim Verdonik.

North Carolina has a chance to become a state leader in the field, and the bill shows that state leaders are”serious” about sparking the economy, he explains. But there are limits.

Verdonik, one of the most experienced and outspoken experts when it comes to the ins-and-outs of startup and emerging company financing, says a crowdfunding bill that could pass at any time in the General Assembly is good news. Just don’t expect miracles.

Plus, he notes, the SEC has yet to implement federal legislation known as the JOBS Act.

Verdonik, who works at law firm Ward and Smith, P.A., says “some assembly still [is] required” at the Securities and Exchange Commission. 

“Unfortunately, the SEC hasn’t completed the process Congress and the President mandated two and a half years ago,” he says.

However, the NC JOBS Act could be ready to enact relatively soon if the House embraces the Senate bill HB 1224 that passed Senate muster early Friday.

“I’m not a big fan of state or federal Government, but on crowdfunding the state Government worked faster than the Federal Government and faster than 80 percent of the other states,” Verdonik tells WRAL TechWire.

“Passing state crowdfunding says North Carolina is serious about growing its economy. I also like that crowdfunding doesn’t cost taxpayers a penny. State crowdfunding is a great example of the many things the state can do to grow its economy without giving sweetheart deals to pay businesses to move here.”

Local Example of Crowdsourcing Potential: GroundFloor

Raleigh-born GroundFloor, which is out to revolutionize real estate financing with its crowdfunding strategy, is an example of how this still-young form of investing could spark change, Verdonik adds. GroundFloor already is approved to do business in Georgia. 

“The examples shown in other states that have passed state crowdfunding is that this is most likely to be used to finance real estate development,” Verdonik points out. “There is a growing Internet based market for investors to purchase small pieces of mortgages. Investors are seeking higher interest than the banks and US treasury bonds are paying them.

“One of the businesses that are leading the way in state crowdfunding is GroundFloor a company that is based here in RTP. So, North Carolina was leading the way even before the state passed this crowdfunding law.” (See recent WRAL TechWire report about GroundFloor for more details.)

However, Verdonik says crowdfunding isn’t likely to be a game-changer – especially with SEC lagging in implementation.

“At the Federal level, there is no excuse for the SEC’s delays on crowdfunding,” he says. “Two and a half years is a disgrace. The bureaucrats are simple out of control ignoring both Congress and the President who passed and sign the JOBS Act two and a half years ago.

“As to the substance of state crowdfunding, we have to recognize that state crowdfunding can only make improvements around the edges of the capital raising problem small businesses face. National markets are more viable than single state markets. The NC statute requires compliance with the Federal intrastate offering exemption. That exemption has always been little used, because it is difficult to comply with.

“Therefore, we should not expect state crowdfunding to perform an economic miracle.”