ATLANTA (AP) – If Georgia is any measure, it will take years for Americans and companies vying for investment through crowdfunding to get comfortable with the practice.
Nearly three years after Georgia began allowing individual residents to invest in small businesses, 35 companies have registered with the state to try it.
At least a dozen states have passed similar laws or rules as the Securities and Exchange Commission continues working on interstate crowdfunding rules designed to open the practice up nationally. Backers complain the U.S. Securities and Exchange Commission is slowing down a viable way to get more money into small business owners’ hands, while the agency has said it’s seeking the best ways to protect investors and companies.
The slow but steady interest in Georgia’s version could be a sign that the federal process is just one hurdle facing the much-hailed crowdfunding concept.
“Like any new technology, you have early adopters who spread the word,” said Brian Dally, co-founder and CEO of real estate investment portal GroundFloor. The company, which connects investors with builders pitching specific projects, moved to Georgia from North Carolina this summer because of the state’s flexible crowdfunding rules.