A Close Look At Arizona's New Crowdfunding Law

Law360, New York (June 29, 2015, 11:45 AM EDT) -- On April 15, 2015, Arizona Gov. Doug Ducey signed into law new crowdfunding legislation intended to give small companies in the local Arizona economy greater access to capital. When the law takes effect on July 3, 2015, Arizona will join a growing number of states that have recently enacted laws permitting some form of equity crowdfunding. For startups and other emerging growth businesses that may not have ready access to traditional sources of funding, equity crowdfunding may be an attractive option for raising capital. However, certain drawbacks exist that any company considering an offering under Arizona's new crowdfunding law should evaluate...

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