What is an Intrastate Equity Crowdfunding Exemption?

11 Mar

Due to the SEC’s Refusal to Pass Title III Crowdfunding Guidelines, which are Three Years Overdue, 31 States Have Passed or Plan to Pass Their Own Intrastate Equity Crowdfunding Exemptions

By Robert Hoskins

Intrastate Crowdfunding Exemptions

List of States with Approved Equity Crowdfunding Exemptions:

The good news is that there are currently 15 states, including Alabama, Colorado, Georgia, Idaho, Indiana, Kansas, Maine, Maryland, Massachusetts, Michigan, Oregon, Tennessee, Texas, Washington, and Wisconsin  that have approved Intrastate Crowdfunding Exemptions. This represents 33% of the United States population or  106.3 million people.

List of States with Pending Equity Crowdfunding Exemptions:

Another 16 states including Alaska, Arizona (not reflected on map), Arkansas, California, Connecticut, Illinois, Kentucky, New Jersey, New Mexico, Minnesota, Missouri, Pennsylvania, Rhode Island, South Carolina, Utah, Virginia that have pending legislation.  This represents 38% of the United States population or 112.4 million people.

List of States Who are Asleep at the Wheel:

Apparently Delaware, Hawaii, Iowa, Louisiana, Mississippi, Montana, Nebraska, New Hampshire, New York, North Dakota, Ohio, Oklahoma, Puerto Rico, South Dakota, Vermont, West Virginia and Wyoming are either asleep at the wheel or do not have internet access. This represents 19.7% of the United States population or 63.6 million people.

List of States that have Rejected Equity Crowdfunding Exemptions:

Only Florida and North Carolina have decided not to help small business get access to investment capital. This represents 9% of the United States populations or 29.8 million people.

100% of Colleges and Universities Can Solicit Accredited Investors

This means that 100% of colleges and universities in the United States can solicit accredited investors nationwide using an equity crowdfunding platform to fund their incubator and accelerator programs.

On a state level, 33% can solicit non-accredited investors now with another 38% hopefully coming online by the end of 2015. If that happens equity crowdfunding will be legal in 31 states where 71% of all Americans live.

Map of U.S. States that approved Intrastate Equity Crowdfunding Exemptions

      Source: CrowdfundingLegalHub.com

 What are Non-Accredited Investors?

In states where an Intrastate Crowdfunding Exemption has been approved by the state securities board or the state legislature, anyone 18 years or older who lives in the same state can invest in local school accelerator’s equity crowdfunding opportunities regardless of income or assets.

This means that even schools in rural areas with zero funding to support startups companies or incubator or accelerator programs can setup an equity crowdfunding sites and begin soliciting angel and accredited investors all over the United States.

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One Response to “What is an Intrastate Equity Crowdfunding Exemption?”

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  1. Why Every University and College Should Develop a Rewards-based or Equity-Based Crowdfunding Ecosystem | Crowdfunding PR, Social Media & Marketing Campaigns - March 18, 2015

    […] states where intrastate equity crowdfunding is legal, any trade school, college or university can build an equity crowdfunding platform and use […]

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