DE HB327

Establishes an intrastate crowdfunding exemption allowing Delaware-based for-profit businesses to raise capital from Delaware residents without federal securities registration.

Caps individual non-accredited investor contributions at $5,000 and total offerings at $1 million within a 12-month period, with accredited investors exempt from contribution limits.

Requires issuers to provide detailed disclosure documents covering company information, business plan, use of proceeds (at least 65% specifically disclosed), management structure, risk factors, and financial statements.

Mandates issuers file notice with Delaware Department of Justice Investor Protection Unit at least 10 days before offering, maintain investor fund deposits in Delaware banks, and update disclosures for material changes with investor consent opportunities.

Permits internet-based offerings through registered sites with requirements that operators either register as broker-dealers, become SEC-registered funding portals, or meet specific conditions limiting involvement in solicitation and compensation.