Virginia House Eases Crowdfunding Restrictions

by | Feb 3, 2015 | Government

Left to Right: Del. Mark Keam (D-Fairfax), Del. Chris Head (R-Roanoke), Del. Joseph Yost (R-Pearisburg), Richmond Entrepreneur Michelle Logan (podium), Del. Scott Taylor (R-Virginia Beach), Del. Terry Kilgore (R-Scott) Robby Demeria (Executive Director, Richmond Technology Council), and Larkin Garbee (Director of Lighthouse Labs and Chief Imagination Officer for 804RVA) speaking at the HB 1360 press conference on Feb. 2, 2015. Photo by Paul Logan.

By Susan Larson

Bipartisan legislation passed February 2, 2015, by the House of Delegates would make it easier for Virginia entrepreneurs to raise money for their startup businesses through crowdfunding.

House Bill 1360, introduced by Del. Scott Taylor (R-Virginia Beach), creates an exemption from some of the requirements of the Securities Act for businesses in Virginia raising money from investors in the Commonwealth.

“Crowdfunding has grown to a multibillion dollar industry that lets entrepreneurs make their case to small investors and get their ideas off the ground,” said Taylor. “This legislation will make it easier for Virginians to invest in promising Virginia startups, creating a culture of entrepreneurship and more good-paying jobs.”

“Using crowdfunding tools, my partner and I were able to meet our goal of raising $20,000 for our product to help women with breast cancer,” Richmond entrepreneur Michelle Logan said at a press conference. “Crowdfunding makes it possible for anyone – not just entrepreneurs like me – to have a good idea and turn it into a viable business.”

“I started my first company in a one-bedroom apartment in Virginia Beach, and after years of work it became one of the fastest growing IT companies in the country,” said Del. Glenn Davis (R-Virginia Beach). “Being able to find funding in those first years when an entrepreneur is just starting out is critical to the success of their business. This legislation widens the audience of potential investors, giving startups a stronger opportunity to succeed.”

The legislation now goes to the Virginia Senate.

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