Tag Archive: Startups
It’s true. Almost anyone can become an investor in a startup thanks to the Texas State Securities Board, which approved the rules to regulate the way startups and investors conduct equity crowdfunding. As a result, more than 20 million unaccredited investors will soon be able to invest up to $5,000 per year in equity investments for small businesses raising under $1 million. The equity crowdfunding rules are important to Texas because of the many startups — especially technology companies — relying on investment capital to grow. Two companies in Texas have successfully raised capital using Texas’ new equity crowdfunding portals. The new regulation will help small, midsize, and high growth companies raise the capital they need to take their company to the next level. Additionally, crowdfunding will spawn innovation, prove business models and create new jobs. This new rule presents a tremendous opportunity for entrepreneurs, investors and the great state of Texas. “In order for equity crowdfunding to work effectively for all, we need more education for issuers and investors in the business community,” states Cynthia Nevels founder of Thinkcrowdfund.com.