Give Now

New Crowdfunding Rules Increase Caps On Collections

Entrepreneurs in Indiana using crowdfunding tools can now collect donations from unaccredited investors.

handshake

Photo: flazingo_photos (flickr)

The total amount someone can collect through crowdfunding in Indiana is $2 million.

Secretary of State Connie Lawson says there are new rules in place for crowd funding in Indiana.

Crowdfunding usually involves entrepreneurs or reputable people raising money online for business or project startups. Lawson says that previously, private companies couldn’t reach out to investors who weren’t accredited. However, she says entrepreneurs can now reach out to any investor and receive a maximum of $5,000 in one offering, and new rules apply to the total amount someone can collect.

“An entrepreneur can raise up to $2 million,” Lawson said. “However, if they want to raise more than $1 million they have to have audited financials on file with our office and an entrepreneur would have to register with us, pay a fee of $100

Lawson says the rules are for the safety of Hoosier businesses and investors.

 

Network Indiana

Network Indiana Indiana's Only Audio News Network. Network Indiana is dedicated to providing the state of Indiana important and useful information.

View all posts by this author »

What is RSS? RSS makes it possible to subscribe to a website's updates instead of visiting it by delivering new posts to your RSS reader automatically. Choose to receive some or all of the updates from Indiana Public Media News:

Support For Indiana Public Media Comes From

Search News

Stay Connected

RSS e-mail itunes Facebook Twitter Flickr YouTube

Follow us on Twitter

What is RSS? RSS makes it possible to subscribe to a website's updates instead of visiting it by delivering new posts to your RSS reader automatically. Choose to receive some or all of the updates from Indiana Public Media News:

Recent Business & Economy Stories

Recent Videos

Find Us on Facebook