It’s no secret that for any small business, raising capital is a challenge. Funding options are available through bank loans, grants, even angel investments or venture capital, but only if you meet the criteria required to be considered for these types of funding models.
However, with the advent of investment crowdfunding coming on the scene in North Carolina, some business owners have chosen to pursue the new and innovative route of “community capital.” These entrepreneurs put forth their business opportunity to North Carolina residents who they hope will make up their “crowd” of interested and engaged investors.
While adoption has been slow since the N.C. PACES Act went into effect in 2017, the tenets of what has made for successful investment crowdfunding capital campaigns across the country have flourished in our state. Issuers – or the business owners who apply for and receive an exemption from the state to offer the sale of a security under the new regulations – tap into a crowd of potential investors based on any number of criteria.
With the first five issuers receiving their exemption from the North Carolina secretary of state to issue their securities under the N.C. PACES Act on the INVESTinNC portal, we’re taking this opportunity to learn from the issuers themselves what appealed to them about the concept of pursuing community-based capital.
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