Access to capital continues to be a roadblock for Wisconsin start-ups. The Legislature hopes to take a small step toward increasing financing options with AB 350. The bill, which would allow investors to get ownership and a potential return on their investment in crowdfunding projects, passed the Assembly on a bi-partisan vote.
Right now the public only gets a small trinket of appreciation and enjoyment of being a part of the creative process for their donation, but the bill would expand crowdfunding in Wisconsin by creating a state securities exemption that would allow Wisconsin businesses to raise up to $1 million from both accredited and non-accredited Wisconsin investors without an audit, or up to $2 million if the company agrees to be audited. Non-accredited investors would be able to invest up to $10,000 in a single crowdfunding campaign.
The bill will now go to the Senate Committee on Economic Development for a hearing.