Friday, June 12, 2015

Crowdfunding to Surpass VC Funding by 2016

According to this article in Forbes, the amount of money raised by crowdfunding is expected to surpass the amounts invested by the VC industry by 2016. Crowdfunding is expected to raise $34B this year while the VCs are expected to invest $30B.

The NC PACES Act investment crowdfunding exemption takes advantage of this trend by enabling any North Carolina resident to invest in a North Carolina business via equity or debt instruments, provided that the reporting, disclosure, registration, and limits described in the exemption are followed. This will provide a significant new source of small business and startup funding all across the state, at no cost to the tax payers. Across the nation, 21 states have already followed our original strategy and implemented an intrastate crowdfunding exemption. Another 18 including North Carolina are in the process of passing the exemption.

It is time for the North Carolina General Assembly to act on S481, the NC PACES Act.

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