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Community Public Offering

Oregon has a new law that allows regular folks to invest in Oregon businesses, and encourages Oregon’s entrepreneurs to raise capital from their neighbors. Oregon’s newest community capital option is called the “Intrastate Offering (aka ‘Crowdfunding’) Exemption” by the State of Oregon and “Community Public Offering” (CPO) by NEOEDD and by Hatch, a company that offers services to business owners who would like to take advantage of this funding stream. Unlike the donation-based crowdfunding described here, CPOs have the potential to generate profit for the investor, in the form of interest on a loan or revenue (dividends, profit sharing, or stock appreciation) on equity shares.

As explained on Hatch's website, Oregonians may invest in Oregon-based businesses through the CPO. These rules:

  •     Enable securities crowdfunding (not donation-based crowdfunding).
  •     Allow all types of securities and terms, from debt to equity.
  •     Allow limited public advertising.
  •     Exempt offering materials from being be registered, vetted, or reviewed.
  •     Require offering documents to include information from your business plan, reason for raise, team, risks/benefits, terms, etc.

Companies using this law:

  •     Must be incorporated in Oregon and based within Oregon.
  •     Can raise up to $250,000.
  •     Define the terms of the offering.
  •     Must meet in person with local Business Technical Service Provider to review business plan.
  •     Are allowed 12 months to raise the funds; can extend another 12.

Investors:

  •     Must be Oregon residents.
  •     Can invest up to $2,500 per deal, per person.

Listen to this podcast with Amy Pearl of Hatch and Stuart Phillips of Red Wagon Creamery, the first successful CPO campaign. Click here to access a decision tree developed by the Washington Dept. of Financial Institutions to determine if this type of capital-raising is a good fit for your business. Keep in mind that Oregon's rules are slightly different, so this is simply a guide. Once Oregon has developed a decision-tree tool, we will replace the Washington version.

Is your business ready for a capital campaign? Click here for more information.