Hicklooper signs equity-crowdfunding law to let anyone invest locally

Crowd Funding. Internet Concept.
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With the help of four pens on Monday, Gov. John Hickenlooper signed the Colorado Crowdfunding Act into law to let residents buy stock in local companies without becoming an accredited investor.

House Bill 1246 sped through the legislature with no opposition or changes since its February introduction.

“This is to help Colorado small businesses trying to raise capital and Colorado residents who want to invest in Colorado businesses,” said Rep. Pete Lee, D-Colorado Springs, who co-sponsored the bill with Rep. Dan Pabon, D-Denver. “It was the perfect bill.”

The new law eases the process of raising that first $1 million by letting people ask their neighbors for up to $5,000. While companies must inform investors of the risk and provide quarterly reports, they can skip the audit and other expenses typically needed to attract investors.

That would have saved Matthew Shifrin, CEO and co-founder of Utivity, a Denver company that connects people who want to learn with people who want to teach.

He spent six months talking to potential investors in 22 states and raised $1 million from 74 investors — spending 90 minutes each talking to 250 people.

To read the full article, click http://www.denverpost.com/business/ci_27906349/hicklooper-signs-equity-crowdfunding-law-let-anyone-invest

 

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