Equity crowdfunding is off to a slow start in Wisconsin, with few businesses moving to use the new investment vehicle, and banks seemingly cautious about getting involved.
Other states have traveled a similar path, but Wisconsin's road contains a speed bump found nowhere else:
The financial institution that holds investors' money during a crowdfunding campaign must be state chartered.
That means the biggest banks — federally chartered institutions such as BMO Harris, Chase and U.S. Bank — can't participate.
Image: Mark Hoffman Giotto Troia (from left), Andrew Gierczak and Henry Schwartz have been attempting to raise money for their company, MobCraft Beer Inc., under Wisconsin’s new crowdfunding law, but they have had trouble finding a state- chartered financial institution willing to work with them.
