New Law Opens Crowdfunding DoorsPosted: Updated:
The co-founder of Indianapolis-based Localstake says a new state law on crowdfunding will help entrepreneurs clear one of their biggest hurdles. Kevin Hitchen says the measure "enlarges the pool" of potential investors by eliminating a funding limit and allowing startups and small businesses to advertise they are raising capital. He says Localstake is already seeing a "very measurable" impact on the number and quality of companies signing up for its online crowdfunding platform. You can read the full legislation by clicking here.
Hitchen says the law allows businesses to "tap their fanbase," citing an example of a restaurant offering its patrons an opportunity to invest in bringing another location to town. He says crowdfunding also allows people to invest in local economic development.
Localstake launched in Indiana and Michigan last year. In January, the company announced plans to expand into a new state every month this year. Localstake rolled out in Wisconsin earlier this year. Hitchen says the company is also in talks with organization in states including California, Texas and Oregon.