INDIANAPOLIS (WISH) — There are new rules in place for business owners in Indiana who hope to use Internet crowdfunding to raise money from investors.
Secretary of State Connie Lawson spelled out the rules Tuesday morning at the Speak Easy in Broad Ripple. That’s a community center for entrepreneurs where members share ideas and strategies.
The crowdfunding rules allow a registered company to raise up to $2 million. It’s intended to help out start-ups as well as existing companies.
“Now anyone can invest up to $5,000 in an Indiana-based offer,” said Lawson. “Previously, only relative wealthy people who qualified as an accredited investor could buy shares of companies not listed on a public stock exchange.”
Indiana is one of just five states that regulate crowdfunding. A new law that takes effect Tuesday made the new rules necessary.