Jean publishes a blog called the Enterprise Corner. It features articles on entrepreneurship, local industry trends, manufacturing news and periodic ‘toolbox’ articles showcasing assistance, incentives and other resources for local businesses.
Washington State is on the verge of being in the crowdfunding business. The state legislature passed HB 2023 last spring. The legislation allows state businesses to raise up to $1 million during any 12 month period from Washington state residents in a crowdfunding campaign. More recently the State’s Securities Division finished promulgated rules for the state’s crowdfunding legislation. The rules are:
Washington’s new legislation expands the access for ventures and businesses wanting to use crowdfunding. The State Department of Financial Institution’s Securities Division will administer crowdfunding activities and the program will officially start on November 1st.
Until recently, there was only one type of crowdfunding – the donation model. It primarily focuses on creative ventures or causes. Entrepreneurs, artists, and others with an idea can cast it out through crowdfunding sites and solicit funding. Donors usually get a perk such as a T-shirt or pre-released CD or other product in exchange for helping a good cause or a cool new venture. Donors do not, however, get any stock or ownership in the company.
Lawmakers all over the country have been pushing to create crowdfunding programs like Washington’s. This is partly due to the fact that federal crowdfunding rules have been moving forward like a glacier despite passage of the JOBS act several years ago. With a great potential tool for funding businesses available states are not willing to wait for the train from Washington.
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