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.