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

Goodbye Personal Computers

By: Doug Mohney    5/26/2015

The phone is likely to be the central form factor, but people are going to carry other devices as well. Samsung has received a patent on a device that…

Read More

Charter Springs Big for TWC with $78.7Bn Offer

By: Tara Seals    5/26/2015

The valuation makes Comcast's previous, failed $45 billion offer for TWC look like chump change. And it blows away the $132.50 per share, or $37.3 bil…

Read More

OTT Growth to Carry the Pay-TV Market Forward

By: Tara Seals    5/26/2015

The global pay TV services market is growing at a slow but steady rate, as over-the-top (OTT) video uptake balances out stagnating growth in saturated…

Read More

Apple's iPhone 7 Set to Show in August, Sell in September

By: Steve Anderson    5/22/2015

It's hard to believe, but we've already been with the iPhone 6 and the iPhone 6 Plus for almost a year; since September, these devices have been at th…

Read More

Twitter, Google Kick Off Search Integration

By: Tara Seals    5/22/2015

Twitter and Google have kicked off a user engagement campaign that brings Tweets to Google Search.

Read More