Resolvit IT Professionals Networking Group Message Board › North Carolina’s New Nexus of Innovation: Where Local Capital In N. C.
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Revitalizing The State’s Small Technology Manufacturers Through Internet Crowd Funding
A Historical Entrepreneurial Opportunity If Only The Elected Representatives Will Seize It
A recent revision to the 1933 Securities Act allows small companies to raise small amounts of capital using the internet to attract potential investors. Section 4 of the Securities Act of 1933 (15 U.S.C. 77d) was amended to allow companies to solicit investors via internet social media.
The 1933 law contained two barriers to raising capital that were no longer valid in the era of the internet. The first prior barrier concerned public solicitation of investors, and the second barrier concerned a minimum net worth of $1 million for potential investors.
Under the new law, private companies can raise up to $1 million a year, with the provision of non-audited financial statements. Companies can raise up to $2 million if they provide audited financial statements to potential investors.