Crowdfunding has been a popular source of start-up capital for new and emerging companies for the last few years. However, historically there has been no way in Illinois for would-be investors to receive equity shares of the enterprise they choose to back. Thanks to a new law signed by Illinois Gov. Bruce Rauner on July 29, companies seeking crowdfunded capital will be able to provide equity shares to investors starting Jan. 1, 2016. The bill, which passed unanimously in the Illinois House and Senate after it was filed in February, will allow nonaccredited investors with a net worth of less than $1 million who make less than $200,000 per year to invest $5,000 per company per year.
Freeborn attorney Anthony Zeoli, a Partner in the firm's Corporate Practice Group, authored the equity crowdfunding bill. He was recently interviewed by the Chicago Tribune and Alton, Ill.-based WBGZ Radio about the legislative development. Speaking to the Chicago Tribune for an article titled "Rauner Signs Equity Crowdfunding Bill into Law," Anthony said: "I expect there to be a lot of activity. I've already had maybe 10 companies reach out to me. We'll have to vet those, of course."
To read the full Chicago Tribune article, click here.
To listen to the WBGZ segment, click here.
