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

Based on the documents provided, it appears that you can use crowdfunding to raise money in Oregon without violating securities laws, but there are certain requirements that must be met.

Requirements for Using Oregon’s Intrastate Offering Exemption

To use Oregon’s Intrastate Offering Exemption, also known as “crowdfunding,” your business must meet the following requirements [1]:

  • Your business must be organized under Oregon law.
  • Your business must have its principal place of business in Oregon.
  • At least 80% of the business’s gross revenues must come from Oregon.
  • The total amount raised through the offering cannot exceed $250,000.
  • The offering must be made only to Oregon residents.
  • The offering must be conducted through a registered intermediary.

Federal Crowdfunding Rules

In addition to Oregon’s Intrastate Offering Exemption, there are also federal crowdfunding rules that allow businesses to raise capital through securities offerings using the internet [3]. These rules, which were adopted by the Securities and Exchange Commission (SEC), allow businesses to offer and sell securities in crowdfunding transactions without having to register the securities with the SEC.

However, there are certain requirements that must be met in order to use the federal crowdfunding rules [3]:

  • The offering must be conducted through a registered intermediary.
  • The amount raised through the offering cannot exceed $5 million in a 12-month period.
  • Individual investors are subject to investment limits based on their income and net worth.

Conclusion

In summary, it appears that you can use crowdfunding to raise money in Oregon without violating securities laws, but you must meet certain requirements. If you plan to use Oregon’s Intrastate Offering Exemption, your business must meet the requirements listed above. If you plan to use the federal crowdfunding rules, you must also meet the requirements listed above.

Source(s):
Jurisdiction

Oregon