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State of Georgia: An Intra-State Crowdfunding Pioneer Awakens.

PLACES Venture Atlanta Knox Massey Interview

Reposted - Editor’s Note: Since the implementation of the Invest Georgia Exemption (IGE), equity crowdfunding has opened up an entirely new asset class to a segment of the investing public that had previously been off limits. Now, as only one of four states [soon to be five: Washington’s crowdfunding bill goes into effect this June] with such an exemption on the books, Georgia is at the forefront of an exciting entrepreneurial experiment that could shape the future of crowdfunding for years to come.

 

We asked Knox Massey, former managing director of the Atlanta Technology Angels and founder of the Georgia Crowdfunding Community, to share his thoughts about equity crowdfunding, its impact on the angel investment community and the future growth of equity crowdfunding in Georgia.

 

Venture Atlanta: What is the Invest Georgia Exemption?

 

Knox Massey: On December 8, 2011, the Invest Georgia Exemption  (“IGE”) was adopted by the Commissioner of Securities for the State of Georgia. The purpose of the IGE is to provide Georgia-based entrepreneurs with expanded access to much needed capital in order to develop new business ventures, expand existing operations, and create more Georgia jobs.

 

The IGE takes advantage of a federal securities exemption that exempts securities registration requirements with respect to certain securities offerings conducted on an entirely intrastate basis: i.e., between issuers residing in and doing business in the same state as all of its investors.

 

VA: Why is the Invest Georgia Exemption important for Georgia?

 

KM: A few reasons:

 

  1. Intrastate crowdfunding is legal in Georgia!
  2. The IGE allows non-accredited investors who are Georgia residents the ability to invest in Georgia-based companies.
  3. Georgia residents who are non-accredited investors can invest up to $10,000 per company (issuer) under the IGE.
  4. Georgia issuers using the IGE can raise up to $1,000,000 annually.
  5. Georgia issuers using the IGE can advertise their respective capital raise(s).
  6. Georgia is only one of 5 states that currently allow this type of “intrastate” investment ability for non-accredited residents.

 

 

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