Crowdfunding Is Here!
By Kevin Vela
Texas has officially become the 13th state to allow equity crowdfunding within its borders. The rules approved by the Texas State Securities Board in October went into effect on November 17, 2014, expanding investment opportunities in local businesses to nearly all residents of Texas. It is expected that the first portals could come online as early as next week.
The rules allow Texas companies to raise up to $1 million per 12-month period and non-accredited Texas investors to contribute up to $5,000 per offering. Like any good regulatory agency, the Securities Board is not about to let Texas companies and residents go investment crazy, so understandably there are several requirements and restrictions associated with intrastate crowdfunding to be mindful of.
Thorough information, including the specific rules and forms, can be found on the Texas State Securities Board website here.