Archived Webinar: Crowdfunding Farm & Food Businesses under New North Carolina Securities Laws
Because of legislation passed by the N.C. General Assembly in July 2016, startups in North Carolina can now raise up to $2 million from average investors using their own web site or a registered funding portal. A further simplified option, called the Local Public Offering (LPO), permits raising up to $250,000 without use of a web site. Think of this as a friends-and-family round except now any North Carolina resident can back an offering. These options include various safeguards for investors while expanding fundraising avenues for startups. A representative of the N.C. Department of the Secretary of State’s Office will cover recent developments in investment crowdfunding including:
- Overview of how securities laws apply to crowdfunding
- Data on what has worked and what has not in crowdfunding
- Why breweries, distilleries and customer-driven companies are leading the pack
- How more than 300 startups have filed for federal crowdfunding
- Why N.C.’s LPO option is unique among states
Those advising startups will benefit from this webinar because access to capital remains a top challenge for small businesses in North Carolina. Crowdfunding is being seen as a tool for small companies to obtain funding from their communities or customers. Becoming conversant with this new option will help advisors recognize ventures that may be good fits for crowdfunding and encourage those startups to seek out legal counsel to conduct such offerings.