Crowdfunding has been a buzzword for a significant period of time, but not involving equity or debt securities in Colorado. Crowdfunding made national headlines when it was authorized by Title III of the Jumpstart Our Business Startups Act (JOBS) Act of 2012, but three years later the Securities and Exchange Commission has not yet adopted rules to implement the JOBS Act requirements for crowdfunding.
In April 2015, after passing both the House and the Senate of the Colorado General Assembly, H.B. 15-1246 was signed into law by Governor John Hickenlooper. Although the law becomes effective on August 5, 2015, the availability of crowdfunding as an alternative tool for capital formation in Colorado is dependent upon rulemaking by the Colorado Division of Securities.
Herrick Lidstone’s paper discusses state crowdfunding pursuant to the federal intrastate securities exemption generally, the law as adopted in Colorado, and the rulemaking required to implement the Colorado Crowdfunding Act.
Read more here.
