Crowdfunding Is Here!
November 19, 2014 | 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 at http://www.ssb.state.tx.us/Important_Notice/Texas_Intrastate_Crowdfunding.php.
Posted in Crowdfunding, Funding & Capital Raising, Securities
Kevin Vela is the managing partner at Vela Wood. He focuses his practice in the areas of venture financing, mergers & acquisitions, corporate law, capital raises, and real estate investment activities. You can see Kevin’s attorney profile HERE.