Wyoming Is the Right State to Crowdfund & Issue a Private Placement Memorandum
Tuesday, October 05, 2021
Wyoming has been a leader in alternative currency and fundraising, passing legislation that is well ahead of other states. With a legislature that can move quickly, you could say that the state operates a lot like entrepreneurs. They respond to the market in real time, rather than letting ideas languish for years in committee. That’s good news for entrepreneurs looking to raise money for an idea, expansion or development project.
Why Wyoming is the Right State to Raise Money through Crowdfunding
In the 2021 legislative session, Wyoming passed the Intrastate crowdfunding exemption-amendments. These amendments make the state even more business and entrepreneur friendly. Here’s how -
- This bill increases the amount of money that can be raised and still be exempt from certain securities registration requirements in an offer or sale of a security by an issuer.
- From two million dollars ($2,000,000.00) to three million dollars ($3,000,000.00) if the issuer has not made available audited financial statements as specified;
- From four million dollars ($4,000,000.00) to ten million dollars ($10,000,000.00) if the issuer has made available audited financial statements as specified;
- From ten thousand dollars ($10,000.00) to twenty-five thousand dollars ($25,000.00) funds accepted from a single non-accredited investor.
- This bill removes quarterly reporting requirements when an issuer is exempt under W.S. 17?4?203, instead requiring that the previously reported information be available upon request to purchasers, be available on an internet website and upon request of the secretary of state.
In short, it’s easier to raise money from non-accredited investors (ie. the majority of the public) and the reporting requirements have been eased in general. For entrepreneurs, this is all around good news that could make it easier to raise capital for their projects.
Economic Developers Should Promote Wyoming as an Entrepreneur-Friendly State
We encourage WEDA members to spread the world and to talk about the financial advantages of growing a business and raising capital in Wyoming. In a time where businesses are often crushed by massive regulation, Wyoming is a breath of fresh air and a place where it’s easier to operate.