In the StateScoop article, North Carolina passes crowdfunding-for-small-businesses law, Partner Benji Jones described the impetus for the new PACES Act, which will allow local businesses in North Carolina to seek small investments from private parties using crowdfunding. The article references that dozens of other states have passed laws to create a pathway for its local businesses to raise capital through crowdfunding portals.
“What happened over the past 20, 30 years is that we saw the development of a private placement market where companies were really only able to look to the most wealthy investors to support them in a private offering,” said Benji.
But with the new PACES Act, which Benji helped craft, small businesses that don't want to become publicly traded can raise money from many smaller investments—up to $2 million every 12 months if they file a financial audits.
Benji added, “If you stay within the requirements of the path we’ve created, our North Carolina companies can now reach any type of North Carolina investor, irrespective of their wealth or income or sophistication.”
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