In Virginia, crowdfunding is governed by the Virginia Intrastate Crowdfunding Exemption (ICE) for local deals, alongside federal Regulation Crowdfunding (Reg CF) for national deals.
Unlike some states that maintain a proprietary list of “state-approved” websites, Virginia allows businesses to raise capital through three distinct channels.
1. The Three Approved Pathways in Virginia
While many national platforms host Virginia deals, the following are the most common “registered funding portals” used by Virginia entrepreneurs for equity and real estate:
According to the Virginia State Corporation Commission (SCC), a business can conduct a crowdfunding offering through:
2. Major Platforms Operating in Virginia
| Platform | Type | Best For |
|---|---|---|
| Wefunder | Reg CF Portal | General startups and small businesses; very popular in VA. |
| StartEngine | Reg CF Portal | High-growth startups and tech ventures. |
| Republic | Reg CF Portal | Highly vetted startups and real estate. |
| Mainvest | Reg CF Portal | Brick-and-mortar local businesses (breweries, restaurants). |
| HoneyComb Credit | Reg CF Portal | Small business loans/debt crowdfunding for local shops. |
- Registered Broker-Dealers: Any broker-dealer licensed to conduct securities business in the Commonwealth of Virginia.
- Directly by the Company: Virginia is unique in that it allows the company itself to host the offering on its own website, provided it meets specific SCC disclosure and escrow requirements.
- Federal Funding Portals: Online platforms registered with the SEC and FINRA (these typically handle Reg CF).
3. Virginia-Specific Requirements (ICE Exemption)
If you are using the Virginia Intrastate Crowdfunding Exemption (to raise up to $2 million from Virginia residents only), you must follow these rules:
- State Filing: You must file a disclosure document with the State Corporation Commission (SCC) at least 20 days before the offering begins.
- Escrow: All investor funds must be held in an escrow account at a federally insured financial institution (Bank or Credit Union) located in Virginia.
- Investment Limits: Non-accredited investors are capped at $10,000 per issuer.
- Residency: The company must be headquartered in Virginia, and 100% of investors must be Virginia residents.
4. How to Verify a Broker or Portal
To ensure a platform or broker is legally allowed to operate in Virginia, use these official databases:
- FINRA BrokerCheck: Use BrokerCheck to verify if a firm is a registered Broker-Dealer or a FINRA-approved Funding Portal.
- SCC Securities Division: You can contact the Virginia SCC directly at (804) 371-9051 to verify if a specific local offering has filed the required paperwork.
- NASAA Directory: The North American Securities Administrators Association maintains a directory of state-specific crowdfunding rules.
Would you like me to find a Virginia-based escrow agent or bank that specializes in holding funds for these types of crowdfunding deals?