Everybody knows Colorado is the most if not one of the most progressive states in the USA; see legalizing marijuana. But have you heard the latest in Colorado progression, the Colorado Crowdfunding Act? This act allows us to forget about whether or not we’re an “accredited investor,” go ahead and crowdfund away!
This is exciting; anyone can now invest up to $5,000 in crowdfunding. For those of you who are unfamiliar with why this is exciting, you first have to remember that, in most places , you have to be an accredited investor to participate in crowdfunding. Not very exciting, unless you also know what it takes (at least one of these has to be met ) to be considered accredited:
- Earn more than $200,000 or $300,000 per year for at least two years, individually or with a partner respectively
- Have over $1 million net worth
- Be a general partner, executive officer, director or a combination of such for the issuer of the security being offered
Having to meet these requirements can be pretty limiting and they do a lot to leave the Mom and Pop investors in America out of the picture. We can only hope that other states will take Colorado’s lead and follow suit; with any luck investing will be more open to all citizens in the future.
To learn more about the Colorado Crowdfunding Act click here
See also:
DBJ’s best of 2015: Is equity crowdfunding a party, or a problem? 12/28/15, Denver Business Journal (subscription may be required)
