Crunch time for crowdfunding - and this Raleigh startup
GroundFloor
Raleigh startup GroundFloor co-founders Nick Bhargava and Brian Dally.
- Lauren K. Ohnesorge[1]
- Staff Writer- Triangle Business Journal
- This email address is being protected from spambots. You need JavaScript enabled to view it.[2] | Twitter[3]
As time starts to run out for the North Carolina JOBS Act, crowdlending firm GroundFloor[4] has snagged a $300,000 loan, bringing its total venture haul to about $600,000.
But GroundFloor’s success – at least in North Carolina – isn’t solely dependent on dollars. It’s awaiting a critical piece of legislation before it can operate here[5].
Specifically, the North Carolina JOBS Act would allow intrastate investment crowdfunding, enabling both accredited and non-accredited North Carolina investors to participate in both crowdfunded equity and debt offerings.
That’s GroundFloor’s business plan – just not in North Carolina.
While the company was founded in Raleigh by Brian Dally[6], one of the spearheads behind Bandwidth’s Republic Wireless, it began by crowdlending real estate projects in Georgia – not North Carolina.
Dally has said the goal is to get his home state involved, but that’s only if it’s legal.
The North Carolina JOBS Act (Jumpstart Our Business Startups Act) has already easily passed the North Carolina State House, and entrepreneurs are putting out the call to get the Senate to come on board before they adjourn for short session. Already, seven states, Kansas, Georgia, Michigan, Wisconsin, Washington, Indiana and Alabama, have intrastate crowdfunding exemptions – with five, North Carolina, Florida, Texas and California, having legislation pending.
Dally was not available to comment on the latest offering but, according to the securities filing[7], he’s still looking to raise about $150,000.
Lauren Ohnesorge covers information technology and entrepreneurship.
References
- ^ Lauren K. Ohnesorge (feeds.bizjournals.com)
- ^ This email address is being protected from spambots. You need JavaScript enabled to view it. (feeds.bizjournals.com)
- ^ Twitter (twitter.com)
- ^ GroundFloor (www.bizjournals.com)
- ^ a critical piece of legislation before it can operate here (www.bizjournals.com)
- ^ Brian Dally (feeds.bizjournals.com)
- ^ according to the securities filing (www.sec.gov)