Virginia’s House of Delegates on Monday passed Del. Scott Taylor’s crowdfunding bill, which creates an exemption from some of stipulations of the Securities Act for businesses in Virginia raising money from investors in the Commonwealth, reports the Augusta Free Press. Crowdfund Insider also featured the forthcoming vote and the text of House Bill No. 1360 in a recent article.
WSLS10 notes that “the exemption would apply to only the first $2 million raised per year and the business could not raise more than $10,000 from any single purchaser unless the purchaser is an accredited investor as defined by 17 C.F.R. § 230.501.” Del. Scott Taylor stated,
The greatest challenge that startups with good ideas face is finding the capital to grow. ‘Crowdfunding’ has grown to a multibillion-dollar industry that lets entrepreneurs make their case to small investors and get their ideas off the ground. This legislation will make it easier for Virginians to invest in promising Virginia startups, creating a culture of entrepreneurship and more good-paying jobs.
Richmond, Va. entrepreneur Michelle Logan spoke about how crowdfunding helped her and her partner meet their goal—within three weeks—of raising $20,000 for their product to help women with breast cancer. Del. Glenn Davis (R-Virginia Beach) spoke to the importance for entrepreneurs of finding funding during the first few years of their business venture.
Nicole Riley, state director of the National Federation of Independent Business, stated,
This legislation is a win-win for Virginia small businesses and investors. It gives entrepreneurs another tool to raise startup money, provides established small business owners another financing option to expand and gives investors in Virginia another incentive to help more new and small businesses succeed in the Commonwealth.
Next, HB1360 is headed to the Senate, notes the Virginian-Pilot.