While most of the country waits for the SEC to create rules to govern Equity Crowdfunding under the JOBS Act, LocalStake is helping small businesses raise the funds they need to grow through the Intrastate crowdfunding exemptions in Michigan, Wisconsin and Indiana.
Under the Intrastate crowdfunding exemption (enacted in around a dozen states as of the writing of this review: see here) companies have the ability to offer equity stakes in their companies as long as both the company and the investors reside within the borders of a given state.
LocalStake has done a masterful job of executing on the intrastate exemption in Michigan where they have helped Tecumseh Brewing Company to list and close the first ever Michigan intrastate crowdfunded offer. We are very impressed by the simplicity and effectiveness of the LocalStake.com crowdfunding platform. Our expectation is that Localstake will be even more successful rasing funds in their home state of Indiana (which enacted a crowdfunding exemption effective July 1, 2014).
The founders of LocalStake have also been successful raising funds through “Reg D” offerings using 506(c), allowing issuers the ability to solicit funds from accredited investors through crowdfunding platforms and other means of advertising. LocalStake has been on the forefront of 506(c) offerings, this major rule change under the JOBS Act was put in to effect in Oct. 2013 by the SEC.
Another interesting move by Localstake is its partnership with Zacks CF Research which offers issuers the ability to have their company valued by the largest independent research firm in the US. Zacks CF Research is a division of Zacks Investment Research (Zacks.com). They are currently the only crowdfunding platform to offer issuers and investors a third-party opinion of an issuers offering valuation.
Localstake has quickly become our top pick in equity crowdfunding. The clean and easy to use website allows potential investors to review offerings and invest in local businesses (accredited investors for 506(c) offers and state residents in intrastate crowdfunding offers).
Disclosure: We are currently working with Localstake, Zacks CF Research and Illinois Attorney Anthony Zeoli supporting an Illinois intrastate crowdfunding exemption. This review is also written by a contractor of Zacks CF Research and does business with Localstake issuers.
Our business relationships at Crowdfunding Website Reviews will never influence our ratings of crowdfunding platforms or crowdfunding services.
We strongly encourage our readers to visit Localstake, particularly residents of both Michigan and Indiana as intrastate equity offerings are being added to the Localstake platform on a weekly basis. Crowdfunding Website Reviews encourages potential investors to do their own due diligence and research on any potential investment.
