A growing number of states have taken it upon themselves to push forward with investment crowdfunding while the SEC still ponders Title IV and Title III of the JOBS Act. While Title II of the fabled bill has been in effect since September of 2013 – this crowdfunding exemption serves only to cater to the accredited investor category. Indiana in recognizing the profound potential to boost their local economy, create jobs and foster innovation, signed the bill into law back April of this year. The midwestern state benefitted by having a Governor willing to champion the crowdfunding cause – aided by committed staffers and community leaders.
“(we) still want to bring in jobs of 500 or 1000 at a time but (we are) equally concerned about bringing jobs here 5, 10, 15 at a time because there is a recognition that small businesses and entrepreneurs truly are the economic engine of Indiana. We want to do whatever we can to make Indiana the best place to start and grow your company.”
Streamlining access to capital is a crucial aspect of launching a business. Over the years excessive regulation has stymied many businesses but now by leveraging advances in technology – crowdfunding may alleviate this challenge. Today in Indiana any business may review rules and file to list their offer on the Indiana Securities Division web site.
Adam Berry, Regulatory Policy Director & Special Counsel to Governor Pence, was one of the administrations leaders on the crowdfunding legislation. Berry recently stated of the now legalized approach to capital formation;
“Job creation is job one in Indiana, and the new law provides additional fundraising opportunities for businesses and entrepreneurs. This is another step our state has taken to make Indiana the best place to start and grow a business.”
“Indiana entrepreneurs have been busy preparing to take full advantage of the new opportunities that will be created to fund their businesses. Everyone involved in developing these laws has been thorough, practical and innovative. We are all excited to see how Hoosiers invest and seek investment locally to support their communities in a true grassroots collective effort.”
Indiana already has a well established investment crowdfunding platform in LocalStake. The company recognized early on the possibilities of launching a portal and is poised to play a significant role in the regions economy. LocalStake has also teamed up with the local SDBC to connect Indianapolis-area small businesses with the strategic planning and funding they need to take their business to the next level. The partnership has created a “Drive for 25” acceleration program for growing Indianapolis-area businesses.
While some states have viewed investment crowdfunding with suspicion and fear, others have embraced this innovative and disruptive technology- viewing change as a positive. Indiana is now part of this elite, innovative group.