North Carolina is one of many US states that pushed forward with intrastate crowdfunding rules. In some states, the rules were more rational than the federal Reg CF exemption created by the JOBS Act of 2012. North Carolina is one of those states.
According to the NC Paces Act, once an offering is approved by state regulators, issuers can promote equity or debt offerings to raise up to $2 million (up to $1 million without an audit). The law became effective on April 1, 2017, and, after a good amount of time, the first crowdfunding campaign has been qualified by officials.
LocalStake NC the listing platform based in North Carolina, shares;
“It’s business history in the making. An innovative start up is the first company in North Carolina to find investors–not through PowerPoint and pitches–but through investment crowdfunding, thanks to the state’s new NC PACES Act. The Secretary of State Securities Division has issued the compliance letter for the offfering and it is now live online.”
According to LocalStake NC, the company Hush Buddy is bringing a patented sleep training system for toddlers to market. You may view the offering here but you must register to get information regarding the specifics of the offering.
Hush Buddy is seeking a minimum raise of $50,000 and up to $100,000. This amount may seem small but remember your dollar goes a lot further once you step outside the NYC – SF bubble.
It will be interesting to watch what type of uptake the NC Paces Act sees over the next year. LocalStake NC is a full stack platform so they are able to cater to the needs of the issuer who may want to raised money beyond the state borders using a federal exemption (Reg CF, Reg A+, Reg D 506c).
Regardless, if the money is successfully raised, local investors will back a local company and that capital will go directly back into the economy. Let’s hope we see more of these localized securities offers.
Have a crowdfunding offering you'd like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!