A bill has just been introduced into the North Carolina state house legislature which will enable a new way to finance small business using investment crowdfunding. Start-up companies and small businesses play a critical role in creating new jobs and growing the economy. Crowdfunding, or raising money through small contributions from a large number of investors, allows smaller enterprises in North Carolina to have access to the capital they need to initiate new business ventures as well as to expand operations and hire additional staff.
Details about the North Carolina Jump-Start Our Business Start-ups Act (JOBS Act) can be found on the North Carolina JOBS Act of 2013 Blog. The bill is sponsored by Representatives Tom Murry, Tim D. Moffit, Phil Shepard, and Kelley E. Hastings.
The first expert review is in, and the North Carolina approach to investment crowdfunding has been called “Brilliant!” and “worthy of support” by prominent national crowdfunding and legal expert William Carleton. His post about the bill is called “5 Ways a North Carolina Bill puts the Crowd back in Crowdfunding”
For those unaware, a year ago Congress passed a JOBS Act last year which has been stuck at the SEC as they create the rules that will cover crowdfunding. A year. This effort for a NC JOBS Act of 2013 will create an opportunity for NC companies to raise money from NC residents.