DENVER - The Colorado General Assembly passed a bill Monday that expands the pool of potential investors in private startup companies.
HB 15-1246 was sponsored by Representatives Pete Lee and Dan Pabon and had bipartisan support, according to Karl Dakin, director of Colorado Capital Congress, which supported the bill.
The bill, which had already passed the House, was approved by the Senate Monday and will now go to Gov. John Hickenlooper for his signature to become law.
The bill provides for licensing of a new participant in the Colorado capital sector called an intermediary, who may create a website or Internet platform where securities of Colorado businesses looking to raise growth capital can be sold to investors.
Supporters of the bill said its aim is to widen participation of smaller investors while still providing protections for those investors.
Under the bill, a business selling securities may raise up to $2 million with submission of audited financials or up to $1 million without audited financials.
The business may openly advertise the sale of its securities and an unlimited number of non-accredited investors may buy the securities.
cross posted from innovationews.com