Funding & Financing

New Funding Source for Local Businesses Equity crowdfunding closes the “funding gap” for New Jersey businesses

There is a very real business “Funding Gap” in the United States. Many companies, from entrepreneurial start-ups to established small and midsized businesses, have faced it. Funding business growth or an expansion is not always something that traditional capital sources – such as banks, non-bank lenders or private equity – can do. However, New Jersey businesses now have a new capital source alternative: Intrastate Equity Crowdfunding.

New Jersey companies can now raise up to $1 million via a New Jersey crowdfunding web site, or portal. And individual investors who are residents of New Jersey can invest up to $5,000 in any New Jersey company’s crowdfunding.

“There are many types of crowdfunding,” said Christopher Frey, founder and president of the state’s first and only authorized and registered equity crowdfunding portal Crowd Funding NJ Inc. “Platforms like Kickstarter and Indiegogo, which are charity and rewards-based portals, are well known to those familiar

with crowdfunding. And accredited investors (the wealthy) have been participating in real estate and equity crowdfunding for several years. But now equity crowdfunding is available to all investors and offers New Jersey businesses the ability to raise capital in exchange for a small stake in the company.”

Frey recognized the need that equity crowdfunding could meet during his 20 years of experience operating CFO Solutions Inc., a contract CFO service for startups and privately held family businesses.

“I’ve seen countless companies reach a point where their existing capital is fully utilized and there is nothing available to fund the next stage or to pursue a growth opportunity,” he said. “It could be an entrepreneurial start-up that has a solid business plan, but is too early stage for angel investors or venture capitalists to consider, or it could be a family-owned business that has identified an expansion opportunity that is outside their bank’s lending parameters. Traditional sources of capital are limited in what they can or will do in these situations, but an equity crowdfunding can meet the need and can be a very cost-effective source of growth capital.”

To learn more about closing your own “funding gap” with a New Jersey intrastate equity crowdfunding, visit CrowdFundingNJ.com or email info@crowdfundingnj.com.

Crowd Funding NJ, Inc. (CFNJ) is the first authorized and registered New Jersey Crowd Funding Internet Site Operator (ISO) – commonly referred to as a Portal. We have developed a state-of-the-art Equity Crowd Funding platform that is compliant with New Jersey Crowd Funding Laws and Regulations. Through the Portal we provide a secure fully integrated marketplace for New Jersey Intra-State Equity Crowd Funding transactions. Registered Issuers (New Jersey companies seeking capital) provide fully compliant Disclosure Packages for Registered Investors (New Jersey residents seeking investments) to review. Investors may then make direct investments in Issuers through the Portal.