Good news for North Carolina. LocalStake NC is a new full stack crowdfunding platform that has just launched in the Tar Heel state. The investment crowdfunding platform will offer securities under Reg D (both 506(b) & 506(c)), Rule 504, Reg CF, and the instrastate rule – NC PACES Offerings (NCPO). The only one missing from the list is Reg A+, but I would not be surprised if that one was added to the list soon.
Under NC PACES, or “North Carolina Providing Access to Capital for Entrepreneurs and Small business Act,” crowdfunding legislation, issuers may raise up to $2 million – a nice bump up from Reg CF and its $1.07 million cap. Localstake NC is an extension of Localstake Marketplace LLC, a registered Broker/Dealer, which provides capital raising advisory services and an online investment platform. The platform is partnering with CrowdfundNC.com, an educational and services website that is building the ecosystem needed to support investment crowdfunding in North Carolina.
Localstake NC says it enables startups and small businesses to conduct a professional securities offering and get funding from a new source: their community. Management expects to start crowdfunding their most promising North Carolina startups and small businesses to help grow the economy, create jobs, and enable new products and services in communities all over our state.
Localstake NC is the first investment crowdfunding platform exclusively serving North Carolina and the site wants to help fund small local businesses, like retail shops, as well as promising tech startups that can scale globally. Since Localstake NC is using every securities tool in the shed, the platform wants to be a one stop shop for all your early stage capital needs.
LocalStake describes NC PACES crowdfunding legislation as enabling a safe, fair, and easy way to finance startups and small businesses in North Carolina. Reg CF or Regulation Crowdfunding is part of the federal JOBS Act securities law exemption that is more complicated and expensive to implement, but enables investment crowdfunding at the national level.
The first offering on Localstake NC is a local software company called Buzz Behind Worldwide Inc. The company provides an e-commerce related software application called Revenue Ripple. This first offering is a private listing for accredited investors. Interested potential investors can sign up for a free investor account on Localstake NC to stay informed about this and other offerings as they become available.