Georgia Gets First Federal OK for Crowdfunding Business
Monday, September 28th, 2015
The nation’s first business with federal approval to use multi-state crowdfunding is a Georgia company building on an innovative state law.
Atlanta-based Groundfloor snagged the prize. It was begun in North Carolina but moved to Georgia to take advantage of the Peach State’s law that opens the door to small investors.
A state law passed in 2011 allows individuals to invest up to $10,000 in companies, much the way crowdfunding has been used to raise cash for charities and rock bands. Without the law, the companies would be limited to investments from millionaires or the expense of a public stock offering.
