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

4 Biohacking Facts You Should Know About in 2017

By: Special Guest    8/18/2017

When it comes to biohacking, a more recent development in science, it involves combining the idea of hacking with biology. In today's world, biohackin…

Read More

Rest Your Weary Fingers: Voice Activation is Coming to a CRM Near You

By: Special Guest    8/9/2017

We spend a lot of time talking to our gadgets these days. Whether we're seeking directions from Siri or weather updates from Alexa, speech is quickly …

Read More

Kevin Kennedy Stepping Down, Will New Leadership Help Guide Avaya Back into Prominence?

By: Erik Linask    8/7/2017

After more than eight years as Avaya's chief executive, Kevin Kennedy will be stepping down from that role as of October 1, 2017. He'll be replaced by…

Read More

Micro-CT Scans Allow Researchers to Study Live Insects in 3D

By: Kayla Matthews    8/7/2017

The things we don't know about the natural world could fill textbooks. That's why excitement is the most appropriate response when we discover new way…

Read More

Gogo Making Air Travel More Productive

By: Erik Linask    8/4/2017

Gogo created tremendous hype when it first enabled in-flight connectivity on American Airlines, back in 2008. But, anyone who has used in-flight Wi-Fi…

Read More