Georgia Residents to Invest in Equity through Online Crowdfunding

By Ed Silverstein May 17, 2013

cMEcompete, a social platform for endurance events such as triathlons, marathons or bike races, has become the first platform to issue equity through online crowdfunding to non-accredited investors. There are more than 35,000 such events in the United States each year.

The opportunity was allowed after state officials approved the Invest Georgia Exemption (IGE) in 2012, which makes it easier for companies to raise capital.

“IGE loosens restrictions on how new and small Georgia-based businesses can raise capital from the public market,” explained a recent SterlingFunder blog. “IGE permits intrastate Crowdfunding.”

As of March, Georgia and Kansas were the only U.S. states to allow such equity-based crowdfunding. Industry analysts are eager to watch what unfolds.

“I was thrilled to learn that the first online equity crowdfunding campaign allowing unaccredited investors to invest went online this week,” Alon Goren, CEO and co-founder, InvestedIn, said in a statement. “This is a big step forward, and I hope that more states will consider passing their own laws to jumpstart investment into new companies, as Georgia has done here.”

Still, it’s just a start, and Goren said it will be “a while before equity crowdfunding becomes a reality nationwide, but shining the spotlight on projects like these in states with a progressive attitude toward crowdfunding can only benefit the community.”

“These are exciting times with state law makers removing barriers for startups,” Dan Popovic, the founder of cMEcompete, added. "Now it is time for Georgians to take advantage of this opportunity by investing in new Georgia businesses and fueling the State’s economic recovery. cMEcompete is proud to be the first platform for this historic opportunity.”




Edited by Rachel Ramsey

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

Is the Apple Bubble Finally Bursting?

By: Andrew Bindelglass    4/28/2016

Over the past 13 years, Apple has been one of the most successful companies in the world of tech, posting sales growths in 51 straight quarters. That …

Read More

Shared-Space Providers (Airbnb) Poised to Beat Ride-Sharers (Uber)

By: Steve Anderson    4/28/2016

Travel may be starting to make a bit of a comeback, as a new report suggests that shared-space providers like Airbnb and WeWork are on the rise.

Read More

Facebook Wants More Sharing, Building New Camera App to Drive It

By: Steve Anderson    4/28/2016

One of the great downsides to having a lot of content in any one place is that, after a while, it starts looking downright pointless to add more.

Read More

Comcast Targets DreamWorks Animation for Acquisition in Multi-Billion Dollar Deal

By: Steve Anderson    4/27/2016

A new and unsettling movement is taking place in the content markets, and it's focused around one of America's most hated companies: Comcast.

Read More

How Much Is Internet Access Worth to You?

By: Maurice Nagle    4/26/2016

In sports there are many tales of epic heroism, from Madison Square Garden erupting when Willis Reed walked out of the tunnel in game 7 of the 1970 NB…

Read More