Chicago, IL: VestLo.com has officially become the first to submit an application with the Illinois Secretary of State, Securities Division, to register as a “qualified” crowdfunding portal under the new Illinois Intrastate Crowdfunding Exemption, which recently became effective. Seeking to take advantage of this new game-changing law, VestLo intends to serve as the premiere portal for connecting Illinois residents interested in investing locally with in Illinois-based businesses looking to raise capital.
The new Illinois Intrastate Investment Crowdfunding Exemption represents a game-changing capital raising tool for Illinois-based businesses. This new exemption makes it easier for local companies to find much needed start-up and growth capital by allowing them to raise up to $4mm, per year, from Illinois residents. Under the new exemption, local businesses will now be able to turn their friends, family, fans and even customers into investors, so long as they are Illinois residents. While Illinois businesses have always had the ability to seek capital from “accredited” (i.e. high net worth) angel investors and the like, such funding is often difficult, if not impossible, to find. Moreover, “non-accredited” investors (i.e. everyone else) have traditionally been completely excluded from investing in local businesses. Well not anymore! Under the new exemption Illinois residents, whether they are “accredited” or “non-accredited,” will now have the ability to invest directly in their favorite local businesses or startups through qualified crowdfunding portals like VestLo.com. To learn more about the law itself, you can go HERE to see a thorough presentation prepared by Anthony Zeoli, a local attorney and author of the exemption (as well as being VestLo’s outside counsel).
VestLo is a Chicago based FinTech company that was formed specifically to help foster local investment here in Illinois through local crowdfunding. Besides simply being a local company, the founders themselves have significant and relevant industry knowledge which they intend to leverage, including deep experience in both the financial markets and crowdfunding industry. Regarding the reasons for creating an intrastate crowdfunding portal for Illinois, VestLo Co-founder, Howard Orloff says:
“There are soon to be a ton of national level crowdfunding portals, but we truly believe in the power of “Investing Local” and the significant potential benefits such investments can provide to Illinois businesses and investors, as well as the local economy. As local guys ourselves, we know the importance of supporting Illinois businesses, that is why we are so excited about the new exemption. By “Investing Local,” not only will Illinois’ residents have the potential to earn financial returns, they will be directly, and positively, impacting the local economy by supporting local businesses. Not to mention, by keeping more investment dollars here in Illinois we will be able to create more local jobs. We see the new exemption, and the resulting local investment it will create, as an absolute win-win for the state and its residents and we are absolutely ecstatic to help bring local investors and businesses together. ”
VestLo.com intends to focus exclusively on facilitating the funding of local “investment based” crowdfunding opportunities. For purposes of clarity, unlike the reward or donation models of crowdfunding, commonly found on popular platforms such as Kickstarter, Indiegogo or GoFundMe, VestLo’s “investment based” model will allow Illinois residents to actually invest in local businesses by purchasing equity in the company or loaning money to the business (or some combination of the two, such as convertible debt). As VestLo Co-founder, Hector Robles put it: “[w]e intend to make it easier for companies to raise capital by crowdfunding the needed funds from multiple individual investors. As an alternative to traditional capital raising channels, VestLo will leverage the power and support of the crowd by pooling together individual investments to support local business.”
About VestLo LLC: VestLo, is a FinTech company based in Chicago that is committed to the concept of investing locally. We believe individual customers, neighbors and communities can come together to support local businesses through crowdfunding the investment needed to operate or expand their business. Investing locally will benefit local communities and boost our local economy. Investors see the return on their investment through improvements in their community and potential investment gains. VestLo has two offices in Chicago including a satellite office in 1871, the startup hub of the Midwest.