Sunday, June 25, 2023 | 2 a.m.
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Nevada, traditionally reliant on tourism and gaming as its economic drivers, has long touted the importance of economic diversification. It has sought to woo technology companies and startups to the state through a mix of state-sponsored tax incentives and incubator programs.
Now, groundbreaking legislation has been signed into law that takes the most significant step yet to revolutionize the state’s investment and entrepreneurial landscape, and help diversify the state’s economy.
Assembly Bill 75, introduced by Assembly Speaker Steve Yeager and endorsed by Nevada Secretary of State Cisco Aguilar, passed the Legislature with overwhelming bipartisan support and was signed into law by Gov. Joe Lombardo. It brings much-needed changes to securities regulations by establishing a new category of investor called a Nevada Certified Investor (NCI).
Expanding the definition of eligible investors to include the new NCI category opens the door for more than 30% of Nevada residents to become certified investors, increasing the potential for local investment and economic growth throughout the state.
The new NCI category creates an avenue for economic growth by facilitating investment in Nevada businesses by a broader pool of individuals. Entrepreneurs and startups will benefit from increased access to capital as Nevada Certified Investors bring their financial resources to the table. This legislation fosters an environment that encourages entrepreneurship, innovation and job creation, ultimately propelling the state’s economy forward.
AB 75 also provides protection for investors by limiting investment to no more than 10% of an NCI’s net worth, requiring disclosure of fees associated with investments, and requiring owners seeking investments to pass a background check.
The legislation represents a significant milestone in Nevada’s pursuit of economic diversification, growth and innovation. It not only unlocks opportunities for entrepreneurs and startups but also fosters a supportive environment for local businesses to flourish.
By broadening the pool of potential investors, the bill paves the way for a thriving investment landscape, enabling Nevada to attract and nurture groundbreaking ideas, create new job opportunities and position itself as a hub for entrepreneurial success. That sets the stage for a prosperous future, where innovation and economic prosperity go hand in hand.
Jeff Saling is executive director of the venture capital company StartUpNV in Las Vegas.
