The Massachusetts Securities Division said Thursday that it had adopted a “crowdfunding exemption” for offerings within the state.
Secretary of the Commonwealth William Galvin said that “the emergency regulation” takes effect immediately, and permits Massachusetts companies to raise capital from Massachusetts investors.
The exemption covers intrastate offerings over the internet that would typically raise capital from many investors, each of whom would invest a limited amount.
“This exemption will enable Massachusetts startups and entrepreneurs to more easily use the internet to raise capital, which I hope will, in turn, give a boost to the Commonwealth’s economy and foster job growth here,” Galvin said in a statement. “And a carefully crafted regulation such as this offers protections for investors and companies using this new form of generating capital.”
The North American Securities Administrators Association says that 15 jurisdictions in addition to Massachusetts have, either through legislation or regulation, offered similar crowdfunding exemptions.