Crowdfunding Resources

Terminology

Invest Georgia Exemption

On December 8, 2011, the Georgia State Securities Division promulgated new rules known as the Invest Georgia Exemption (IGE), which permit intrastate crowdfunding.

Specific Terms of the Exemption:

(1) Georgia-based, private companies can sell equity (shares of stock or debt) to Georgia based non-accredited and non-accredited residents of Georgia. 

(2) For-profit Georgia companies can raise up to $1 million annually from non-accredited and accredited investors who are Georgia residents. 

(3) Georgia-based companies can publicly offer their securities in Georgia to Georgia-based residents through a crowdfunding portal.

(4) Non-accredited Georgia residents can invest up to $10,000 per company. Accredited investors who are legal residents of Georgia can invest as much as they like.

(5) To qualify for the exemption, the company must (1) be a for-profit business, (2) be formed under the laws of the state of Georgia, (3) have its principal office in Georgia, and (4) carry out a significant amount of its business in this state.

(6) Companies issuing shares through the exemption must inform investors that the securities are unregistered and may not be resold to non-Georgia residents for a period of nine months after completion of the offering.

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