Crowdfunding: A New Way for Montana Companies to Raise Money

A new exemption passed in the Montana 2015 legislative session will allow Montana companies to use crowdfunding to offer and sell securities in Montana beginning July 1, 2015. This exemption is subject to various limitations and restrictions. Companies considering the use of crowdfunding to raise money must first be aware of the legal requirements of this funding mechanism and carefully consider the associated business implications.

"Crowdfunding" has generated a lot of buzz among startups and emerging companies, entrepreneurs and investors. Generally, crowdfunding enables a large number of small or unsophisticated investors to make investments in a company, often through an online portal or platform. Until recently, offering securities to a large number of small or unsophisticated investors has generally not been practical under state and federal securities laws.

Full Story: http://www.dorsey.com/aa-crowdfunding-montana-companies-raise-money/