Now, in Georgia and a growing number of states, so long as a company is planning to keep a securities offering local (with all investors –both accredited and non-accredited – coming from the same state in which the company is formed), a company can freely pitch an investment offering to anyone, as long as the members in the audience certify their state of residency (such as filling out a sign-in sheet prior to or at the beginning of the pitch event). With only residency to vet, an intrastate offering is the least administratively taxing while offering companies the largest investor pool to choose from. A major win for any company in an intrastate friendly state.
One quick word of caution – the federal and local laws addressed above are complex and require strict adherence. In each case, there are basic filing prerequisites, among other things, that must be followed before a company can legally participate in a public pitch event under any of the mechanisms addressed above. Please use SmartUp’s free consultation tool for more information. We can help you assemble a securities offering best suited to fit your company’s needs.
If you are interested in more detail related to your situation it is best to speak with an attorney.
Megan K. Johnson is a business lawyer with over 7 years of experience. She helped champion securities crowdfunding at the local level and worked with the first company to successfully close an equity crowdfunding involving everyday investors. She is a partner at Founders Legal and can be reached at [email protected]
Source: Smartup Legal