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

Requirements for Crowdfunding in Kansas

Crowdfunding is a way to raise money for a project or venture by soliciting small contributions from a large number of people, typically via the internet. In Kansas, crowdfunding is regulated by the Kansas Securities Act ^[2].

To use crowdfunding to raise money without violating securities laws in Kansas, you must comply with the following requirements:

1. Register with the Kansas Securities Commissioner ^[2].
2. File a notice of intent to offer securities ^[2].
3. Provide investors with a disclosure document that includes information about the company, the securities being offered, and the risks associated with the investment ^[2].
4. Limit the amount individual non-accredited investors can invest across all crowdfunding offerings in a 12-month period ^[1].
5. Be cautious of Simple Agreements for Future Equity (SAFEs) in crowdfunding ^[1].

It is important to note that the requirements for crowdfunding may vary depending on the type of securities being offered and the amount of money being raised. It is recommended that you consult with a securities attorney to ensure compliance with all applicable laws and regulations.

Source(s):

• [1] Regulation Crowdfunding - SEC.gov
• [2] Testimony of Heath Abshure

Jurisdiction

Kansas

• General