Wisconsin legislators propose crowdfunding bill
On Tuesday (Aug. 13) three state legislators unveiled a proposed crowdfunding bill that will make selling shares to investors online easier and more effective for Wisconsin businesses, according to this article from The Business Journal. The Jumpstart Our Business Startups (JOBS) Act, a federal law that allows “crowdfunding campaigns to raise up to $1 million from non-accredited investors” was put in place just last year. However, the new Wisconsin bill aims to make for a simpler and less expensive process for businesses.
The proposed bill “would create a state securities exemption for Wisconsin businesses to raise up to $1 million from both accredited and non-accredited investors without an audit, or up to $2 million if the company agrees to be audited.” The bill would also give non-accredited investors the ability to “invest up to $5,000 in a single crowdfunding campaign,” rather than going by the sliding scale provided in the JOBS Act.
So far Georgia and Kansas are the only two states to pass similar statewide crowdfunding laws, but other states are catching on. With the current popularity of sites like Indiegogo and Kickstarter, there’s no better time to implement these changes. And hey, now maybe I can finally get my Beatles-themed handwear store (Glove Me Do) up and running.
Go here for more information on crowdfunding in Wisconsin.