Equity Crowdfunding Portal

States lacking venture capital investment in new companies could create an Equity Crowdfunding Hub. Online equity crowdfunding hubs allow entrepreneurs to advertise their business ideas and gather small investments from many investors. By creating a single location for investors across the world to find new businesses, equity crowdfunding hubs can dramatically improve access to capital. Several states and universities have set up crowdfunding hubs, including Wisconsin’s CraftFund where Wisconsin investors can browse specialized companies seeking investors, and Penn State’s Crowdfunding. States could allocate funds to the office of economic development to coordinate a crowdfunding hub through one of the state’s universities. States could also provide matching grants for crowdfunding companies in sectors where the state should have a competitive advantage, for example, solar companies in Nevada or wind companies in Iowa.