All residents of North Carolina now have the ability to invest in North Carolina businesses that choose to raise money through investment crowdfunding.
Business owners that choose this approach are taking advantage of a new alternative to bank loans, grants, venture capital, or angel investments that sometimes costs a lot or only yield a little. These business owners, or “issuers” as we call them in crowdfunding, are tapping into a new pool of funding that amounts to hundreds of millions of dollars. Money contributed from local investors like you and me.
While programs like INVESTinNC are designed to help educate the market on how investment crowdfunding works, all activity – from potential investors exploring offerings to business owners monitoring the progress of their crowdfunding campaign – occur through a highly-regulated, web-based portal.
An example of our portal is below, which happens to be the first equity crowdfunding portal registered for use by the North Carolina Secretary of State. Please take a look to get a better idea of what issuers offerings will look like as they gain approval to crowdfund and become available online.
Investors interested in companies that have chosen to crowdfund can freely review top-level information related to an issuer’s offering including the terms, any perks that might be available, and crowdfunding activity.
To review more detailed financials, disclosure information, and to potentially invest in a company through an escrow agent, an investor is required to prove their North Carolina residency. The entire process is handled through the crowdfunding portal.
Business owners that use equity crowdfunding must provide certain financial documents and disclosure information to receive approval from the North Carolina Secretary of State. This is to protect both the issuer and investors.
Once those documents are approved, they are contained, and all fundraising and post-fundraising activity is monitored and distributed, through the crowdfunding portal to ensure compliance and serve as a single point of reference for all information.