Crowdfunding startup GroundFloor is not moving to Atlanta because of the failure of the N.C. general Assembly to pass crowdfunding legislation, co-founder and CEO Brian Dally tells WRAL TechWire.

In an in-depth Q&A, Dally talks about why the decision was made, that the firm could have raised more than the $1 million announced Tuesday, and deal flow for crowdfunding-based real estate deals is good. Plus, GroundFloor is already planning to raise more money this year. 

Our Q&A:

  • If NC General Assembly had passed crowdfunding legislation, would GroundFloor have remained in North Carolina?

No. Our decision to move to Atlanta was based on many factors. While we are supporters of the NC JOBS Act, the status of or prospects for passage of it was not one of them.

  • I would imagine that given the roots of the founders in the Triangle that this was not an easy decision to make? 

A year ago, it would have been unthinkable. Even with all the progress the company has made and the way Atlanta has welcomed us during our pilot, it was still a hard decision. We have deeply appreciated all the local support from our investors, advisors and friends.

  • Why is it important that the company be based in a state where crowdfunding is already approved? Couldn’t you have continued to operate here and coordinated out-of-state deals?

We plan to expand our pilot in Georgia significantly ahead of our national launch. Now that the time is drawing closer, among other factors, we felt it was important to base our headquarters in the same place as that operational activity.

  • Will you maintain an office presence in NC?

While we have not made any final decisions about office locations outside our new headquarters in Atlanta, we do still maintain our space at The American Underground @Raleigh.

  • Did you seek and/or receive any tax breaks or incentives to move to Atlanta?

No.

  • Will you return to NC or open an office in NC if NC does pass and the governor signs a crowdfunding bill?

The NC JOBS Act was not a factor in our decision. We continually review and monitor state and federal legislation for opportunities to expand our offerings to more non-accredited investors across the country.

  • How do you plan to invest the new funding beyond the hiring of five people? What positions will the new people fill? How many employees do you have now?

We currently have seven employees and a handful of contractors on staff and plan to hire people in Atlanta to fill positions in marketing, web design (full stack, Ruby on Rails), business development and customer operations.

  • How is the deal flow? Lots of opportunities?

There will continue to be plenty of opportunities for us. We could have raised more and will raise more. The goal with the seed funding was to help fund our pilot expansion in Georgia and expand our team and investment offerings. We are working to close a Series A round in Q4.

  • Angels like to invest locally and be involved in their investments. How did you convince your investors that the Atlanta move was a good idea?

Georgia is where our pilot projects have been successful and where we saw the potential for heavy growth. Georgia is arguably one of the most progressive states for crowdfunding, and more specifically, a center for real estate crowdfunding. Our investors recognized that this is where we needed to be and to establish our voice as a leader in this space, and we are extremely appreciative of their support along the way.