Print Page   |   Your Cart   |   Sign In
Message from the CEO
Group HomeGroup Home Blog Home Group Blogs
Search all posts for:   


View all (4) posts »

Crowdfunding - A Reality for Arizona

Posted By Rick Murray, Arizona Small Business Association, Thursday, July 2, 2015

Message from Rick Murray, Chief Executive Officer of the Arizona Small Business Association - July 3rd, 2015


Raising money to start a business or take a business to the next level has always been a challenge.  Many great ideas and businesses have gone under because they lacked the ability to stay in the game long enough before revenues could support the business.  Under capitalization is the number one reason businesses fail.

Banks know this.  Unless there is collateral or solid financial history, it’s not likely they’re going to lend money.  So where does that leave the small business owner wanna-be?  Typically, they resort to using their retirement funds, obtaining a 2nd mortgage, maxing out credit cards, and borrowing from friends and family to help fund their business.  In most cases, it is not enough. Without the ability to tap into other sources of funds, many businesses are doomed for failure.  That’s why the Arizona Small Business Association championed a new law that allows Arizona businesses to solicit investors for an equity positon in their company without having to comply with SEC laws.

Equity Crowdfunding is different than typical Kick Starter crowdfunding in that you are actually selling shares of the business in return for an investment.  Previously, this option required SEC compliance, which is complicated and expensive and reserved for companies seeking millions of dollars.

The 2012 JOBS Act allowed for equity fundraising at much smaller levels and bypassing SEC requirements, but states needed to set up the framework in order to participate.  With the new Equity Crowdfunding law, Arizona businesses can solicit up to $10,000 per investor and raise as much as $2.5 million.  The Arizona Corporation Commission will have oversight and, along with submitting a business plan, there are several disclosures that a company must comply with in order to participate in Equity Crowdfunding.

This new way for businesses to raise capital is a game-changer.  Businesses that have a solid business plan, competent people at the helm, and a clear plan to profitability will succeed in raising the needed capital.  The obvious by-product will be new jobs and added tax revenue for Arizona.  It will also provide the public with the opportunity to invest in ideas, people and businesses within their community, creating opportunities in areas of the state where none existed before.

But as with all investments, it’s buyer beware.  Due diligence will be critical.   The average person new to investing will need to be diligent, educating themselves before investing in any opportunity.  Asking the hard questions will not only help the investor learn more about the business, but also force the business owner to know more what investors are expecting.

It is hard to predict what equity crowdfunding will look like in 10 years, but one thing is certain: Opening a new avenue for small business to access capital will create new opportunities and new competition in the business lending/funding arena.  It’s the booster shot the Arizona economy needs to continue the gradual climb back to economic relevance.

Rick Murray
Chief Executive Officer
Arizona Small Business Association
4600 E. Washington St., #340, Phoenix
602.306.4000 -

Rick Murray, Chief Executive Officer, ASBA

Update your email preferences

Tags:  crowdfunding  small business 

Share |
Permalink | Comments (0)

Affordable Dental Plans for ASBA Members

Delta Dental of Arizona

2 employees? No problem! We’ve got a dental plan to meet your needs & budget. Click to learn more!




ASBA is the most powerful resource for your business in Arizona. We ensure the tools we offer are valuable and support the growth, education and connections necessary for today’s top business minds.


Enterprise Bank & Trust


Enterprise was founded on the idea of serving the lifetime financial needs of privately held businesses.Today, we continue to empower privately held businesses and also help families to secure their financial futures.



Coffee Connect with ASBA


Date: Held monthly
Time: Click for times based on location


ASBA Speed Networking


Date: Held monthly
Time: Click for times based on location

Have Questions on Health Insurance?

Health Insurance

Do you have questions on plans for Individual, sole proprietor, or group? We can get the answers needed to make sure you find the right plan for you and your employees.


Investment Partner Program


ASBA’s investment partner program delivers your brand throughout Arizona. Share insights, connect with small business and highlight your company’s involvement with the association. Contact Jodi Towns to get started.


Upcoming Event


ASBA is bringing you Health+Plus, an all-inclusive healthcare experience for business owners! We’re getting you in front of healthcare providers, insurance carriers, health and wellness experts, HR, software solutions, telemedicine, and more.


Association Management Software Powered by YourMembership  ::  Legal