cMEcompete, an Atlanta-based startup that provides a social platform for endurance events, claims to be the first company in U.S. history to issue equity through online crowdfunding to non-accredited investors. This means that any Georgia resident can go online and make an equity investment in a Georgia-based company quickly and easily through equity crowdfunding platform SterlingFunder .
Until the federal government approved the JOBS act (Jumpstart Our Business Startups Act) a year ago, securities placement was governed by the SEC Act of 1933. The JOBS Act removes some of the constraints imposed by the SEC Act of 1933, yet the SEC has not yet implemented these changes. To give Georgians a head start rule makers approved The Invest Georgia Exemption in 2012 which makes it legal for non-accredited investors to make intrastate investments (Georgia resident investing in a Georgia company) through crowdfunding.
How is this different from Kickstarter, Indiegogo and AngelList? Kickstarter and Indiegogo provide crowdsourcing of non-equity contributions. AngelList requires all investors to be accredited and the transaction must occur through Second Market (not online).
“These are exciting times with state law makers removing barriers for startups,” says Dan Popovic, cMEcompete Founder. “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.”
cMEcompete is a social platform for endurance events where participants discover like-minded communities, enroll, track accomplishments and get rewarded. With the growth of running/walking, cycling and triathlons, with over 35,000 such events in the US to choose from, we’ve identified a unique opportunity to create a social platform for organizations, clubs and individuals. Company and event sponsors provide the revenue stream and in turn receive increased brand awareness and increased engagement and participation.
“It’s a sound business model that has already proven to be very successful. The Atlanta BeltLine Running Series doubled participation and sponsorship rates in 2012 through the use of our platform,” says Jay Evans, cMEcompete co-Founder.
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