Many see crowdfunding as a way to give fledgling businesses access to larger investment pools. Maine took a step in that direction when the Securities Office adopted a rule implementing a 2014 law authorizing crowdfunding for business investments (Rule 523, implementing 2014 PL Chapter 452, effective January 1, 2015). According to the article, proponents hope the rule will stimulate the growth of small businesses by allowing them to acquire capital from a larger pool of investors. The article highlights the rule’s investment limits:
- $5,000 maximum per individual investor.
- $1 million maximum raised capital for each company in any rolling 12-month period.
- Convicted felons are prohibited from selling equity in their companies.
For more information on crowdfunding in Maine, read the full Press Herald article.