A Community Public Offering is a new tool for Oregon-based businesses to raise up to $250,000 from fellow Oregonians. Made legal through the Oregon Intrastate Offering Exemption rules on January 15, 2015, it offers the chance to raise capital from ALL Oregon residents, regardless of wealth. These rules:
- Enable securities crowdfunding (unlike Kickstarter’s donation-based crowdfunding).
- Allow all types of securities and terms, from debt to equity.
- Allow limited public advertising.
- Offering materials are not registered, vetted, or reviewed.
- Offering documents include information from your business plan, reason for raise, team, risks/benefits, terms, etc.
Companies using this law:
- Must be incorporated in Oregon and based within Oregon.
- Can raise up to $250,000.
- Define the terms of the offering.
- Must meet in person with local Business Technical Service Provider to review Biz Plan.
- Allowed 12-months to raise the funds; can extend another 12.
- Must be Oregon residents.
- Can invest up to $2,500 per deal, per person.
Doing a Community Public Offering involves filing comprehensive disclosure documents, your advertising copy and plans, minimum and maximum amounts that you seek to raise, and a few other sensible things. There’s also a $200 filing fee, so keep that in mind.
We’re here to help – if you are thinking of raising capital within Oregon, Hatch Oregon is a good place to start as we build capacity around the state.
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