Georgia Companies Launch First Equity-Based Online Crowdfunding in US History
Today, the Georgia startup community launched the first company in US history to issue equity through online crowdfunding to non-accredited investors. cMEcompete, an Atlanta-based startup that provides a social platform for endurance events, advertised its equity offering to potential investors on SterlingFunder, another Atlanta-based startup.
Until the federal government approved the JOBS Act (Jumpstart Our Business Startups Act) a year ago, securities placement was governed by the SEC Act of 1933. The JOBS Act removes some of the constraints imposed by the SEC Act of 1933, however putting it into action has been delayed by the SEC. …