[2]
A bill that would allow non-accredited New Jersey residents to invest businesses within the state recently passed the Assembly 75-0. The bill now sits on Governor Chris Christie’s desk, ready for him to sign.
State senators Joe Kyrillos (R) and Ray Lesniak (D) originally introduced the bill in 2013, which allows New Jersey-based entrepreneurs to raise up to $1 million in private capital from non-accredited state residents. Those residents will be able to invest up to $5,000 in crowdfunded projects.
Regarding the bill, Kyrillos commented, “At a time when conventional sources of financing are scarce, this legislation will help New Jersey’s innovators seek private capital from the investing public to develop their products or services right here in our state,” […] “Crowdfunding will level the playing field for future employers, giving those without access to Wall Street a chance to gain startup capital [3] quickly and grow their business with the support of the community.”
Intrastate crowdfunding exemptions such as New Jersey’s have become fairly commonplace, as states have taken action to enact their own crowdfunding regulations in lieu Title III of the 2012 US JOBS Act that would allow nearly any American to invest in companies through crowdfunding. To date, 24 states have intrastate crowdfunding exemptions in place and 15 states are in various stages of enacting or considering crowdfunding legislation.
Kyrillos noted that 90 percent of New Jersey employers are small businesses owners, employing more than half of the state’s private-sector workforce, and retail investors have always been able to put capital at risk in public markets. If his bill passes, New Jersey retail investors will be able to risk capital in private companies as well.
“Entrepreneurs in New Jersey deserve the same opportunities to thrive as innovators in other states who have turned several thousand dollars in online crowdfunding investments into thriving businesses with dozens of employees,” he added.
[original [2]]
EquityNet | Business Crowdfunding Portal [4]