Can I use crowdfunding to raise money without violating securities laws in Alaska? What are the requirements?

Requirements for Crowdfunding in Alaska

To use crowdfunding to raise money without violating securities laws in Alaska, you must comply with the requirements of Regulation Crowdfunding ^[1]. Regulation Crowdfunding enables certain companies to offer and sell securities on an internet-based platform through an intermediary that is a registered broker-dealer or registered funding portal.

To qualify for the exemption under Regulation Crowdfunding, the issuer must meet certain requirements, including but not limited to:

• The issuer must be a U.S. company.
• The issuer can raise a maximum aggregate amount of $5 million in a 12-month period.
• The transaction must be conducted through a registered broker-dealer or registered funding portal.
• The issuer must provide certain disclosures to investors and the SEC.
• The amount of securities an investor can purchase is limited based on the investor’s income and net worth.

State Law Requirements

In addition to complying with federal securities laws, issuers must also comply with state securities laws ^[2]. In Alaska, the Alaska Securities Act regulates the offer and sale of securities. The Act requires issuers to register their securities with the Alaska Division of Banking and Securities or qualify for an exemption from registration.

Conclusion

To use crowdfunding to raise money without violating securities laws in Alaska, you must comply with the requirements of Regulation Crowdfunding and the Alaska Securities Act. It is important to consult with a securities attorney to ensure compliance with all applicable laws and regulations.

Source(s):

• [1] Exempt Offerings - SEC.gov
• [2] RAISING CAPITAL: OVERVIEW OF REGISTRATION OF …

Jurisdiction

Alaska

• General