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

Related Articles

Amazon Pulls Apple TV, Google Chromecast from its Store

By: Kyle Piscioniere    10/2/2015

The move is a blow to all three companies; Apple and Google lose the retail giant's highly visible sales platform, while Amazon loses the valuable ins…

Read More

Google and Microsoft Settle Patent Disputes

By: Doug Mohney    10/1/2015

Google and Microsoft have agreed to end a group of 20 smartphone and video game lawsuits in the U.S. and Germany. The battles started in 2010 over roy…

Read More

After Embroiled CEO Search, Twitter Expected to Reappoint Dorsey

By: Kyle Piscioniere    10/1/2015

Jack Dorsey, current founder and CEO of the payment company Square and founder of Twitter, is expected to retake the helm as Twitter's CEO without res…

Read More

Google Dives into RCS, Buys Jibe Mobile

By: Doug Mohney    10/1/2015

Rich Communications Services (RCS) is a controversial topic in net purists' circles and the discussion just got hotter: Google has purchased Jibe Mobi…

Read More

Carriers Play Critical Mobile Finance Role

By: Tara Seals    10/1/2015

More than 68 percent of consumers have yet to use mobile financial services, but that number is changing as mobile broadband continues to roll out glo…

Read More