I'm a North Carolina business that would like to raise money.

If you are a North Carolina based business and want to raise up to $2,000,000, there are new funding options available to you through the NC PACES Act 

Cardinal Crowdfund Solutions, in partnership with LogicBay, provides streamlined services and portal technology to efficiently assist companies that want to raise funds. For those that want to navigate the new regulations on their own, the NC Secretary of State has provided resources on their website that clearly define the process. LogicBay's FundingStack™ portal automates the process flow and ensures compliance, and is the only intrastate funding portal to receive a notice of effectiveness of registration by the NC Secretary of State 

What to expect as an issuer:

Stage 1 – Pre-Filing

  • Evaluate available funding options
  • Assess costs associated with each
  • Solicit service providers

Stage 2 – Notice of Intrastate Claim of Exemption (NCE) Filing

  • Decide to either file a NCE-LPO (up to $250,000) or NCE (up to $2 million)

Requirements include:

  • Non-refundable $150 filing fee
  • Disclosure document (see 18 NCAC 06A .2010 for requirements)
  • Escrow agreement (see 18 NCAC 06A .2019 for requirements)
  • Attestations (see 18 NCAC 06A .2008 for requirements)

Copies of agreements with all supporting entities including: 

  • Crowdfunding services provider
  • Funding portal
  • Broker-dealer
  • Escrow agent
  • Marketing consultant
  • Attorney
  • CPA
  • Names and titles of persons engaged in the offer or sale of the issuer’s securities
  • Names and titles of persons who will serve as the investor contact person(s) for the issuer

Stage 3 – Pre-Fundraising

  • Collect financial statements
  • Develop business plan
  • Develop marketing campaign
  • Produce promotional content 
  • Build website/platform or provide information to funding portal
  • Engage your crowd

Stage 4 – Fundraising Campaign

  • Launch web marketing campaign
  • Provide web-based, informational events (webinars)
  • Participate in live events

Stage 5 – Post-Fundraising

  • Submit an offering report upon completion
  • Provide quarterly reports to investors (until no securities are outstanding)

While these steps may seem complicated, there are definitive benefits to using the FundingStack™ portal to handle the entire process – from organizing your offering and filing your exemption to post-fundraising reporting.


Still have questions? Get in touch to learn more.

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