Gov. Pat McCrory signed crowdfunding legislation for North Carolina last month, so what’s next? How can startups and investors cash in on potential fundraising and investment opportunities?
A Raleigh attorney has plenty of helpful answers.
Jim Verdonik, a veteran of working with tech firms over the past two decades from startups to those going to IPos at the law firm Ward and Smith, has been an outspoken advocate for crowdfunding. He’s proud of what’s happened.
“This year I worked with a group to advocate for North Carolina to enact a state crowdfunding law and I supplied technical advice about the provisions of the statute,” Verdonik wrote in an email. He is “happy” that McCrory signed the law July 22.
“The new law is likely to be used by a wide range of businesses, including real estate developers, social entrepreneurs, start-ups, retail, service and other small businesses,” he points out.
He sums up highlights of the bill – known as the NC PACES act:
- Raise up to $2 million from North Carolina residents during any rolling 12-month period, but businesses can raise more than that by also selling to officers, directors and 10% shareholders and by conducting other offerings, including offerings outside North Carolina.
- Sell debt, equity, revenue share and other types of securities.
- Sell to both accredited and non-accredited investors, although non-accredited investors cannot invest more than $5,000 per year in any business.
- Attract investors by advertising and making a general solicitation, including using the Internet and Social Media, as well as traditional media and public events.
For more insight into the bill’s meaning, read his FAQs at:
http://jimverdonikintersection.blogspot.com/2016_08_01_archive.html
