New Legislation in Delaware to Support Investment in Delaware Entrepreneurs
First order of business when the legislature returns to session next week? A mystery bill, supported by Governor Markell, a as well as a bipartisan coalition in Dover. The Bill is sponsored by Representative Bryon Short (D-Highland Woods) and Senator Brian Bushweller (D-Dover), would permit the use of online crowdfunding platforms, allowing Delaware residents to be investors in Delaware start-ups and small businesses, expanding the potential pool of investment capital for small businesses while also giving Delawareans the chance to be early stage investors in these ventures.
In a nutshell- what makes this a good idea?
The bill would enable Delaware-based companies to offer equity stakes to Delaware residents or other Delaware businesses over internet platforms. (Due to Federal law, Delaware cannot permit investment from residents of other states.) Although the bill would require certain disclosures in order to ensure the validity of the offerings, it does not require issuers to make detailed financial disclosures that might be prohibitively costly for many small businesses and start-ups. A business can raise up to $1 million over a 12-month period and an individual can invest up to $5,000 in any one offering.
Access to capital = business growth = a good economics for Delaware.
Looking forward to following this one closely.