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

Crowdfunding in Virginia: Requirements and Regulations

Crowdfunding can be a viable option for businesses to raise capital, but it is important to comply with securities laws to avoid legal issues. In Virginia, businesses can use crowdfunding to raise money without violating securities laws if they meet certain requirements.

Requirements for Crowdfunding in Virginia

• Companies can rely on Rule 147 as a safe harbor under Section 3(a)11 of the Securities Act of 1933, or intrastate offering exemptions ^[3].
• Companies must be organized under Virginia law ^[5].
• Crowdfunding offerings must comply with federal securities laws ^[2].
• The amount individual non-accredited investors can invest across all crowdfunding offerings in a 12-month period is limited ^[4].
• Disclosure requirements must be met ^[4].

It is important to note that these requirements are subject to change and it is recommended to consult with legal counsel to ensure compliance with securities laws.

In summary, businesses can use crowdfunding to raise money in Virginia if they meet the requirements outlined above. However, it is important to comply with securities laws and seek legal advice to avoid legal issues.

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Source(s):

• [2] Small Business and the SEC - SEC.gov
• [3] Equity Crowdfunding in Virginia – July 20, 2020
• [4] Regulation Crowdfunding - SEC.gov
• [5] Report to the Chairmen of the House and Senate Commerce and …

Jurisdiction

Virginia

• General