In 2011, Georgia adopted a rule that allows everyday residents to invest in companies through crowdfunding and they get an ownership stake - a measure similar to legislation being enacted in Tennessee next month. The "Invest Tennessee Exemption" was signed into law in May, touted as a boost to small businesses and startups by providing more funding options. But in this Tennessean article, Chris Sloan notes that, in some cases, using the exemption could actually hinder equity raises as many early stage companies garner out-of-state investments in their capital raises, which is not possible under the new exemption.
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