Crowdfunding in Texas Expands

By Georgina McCreadie on Friday 6 March 2015

Savings and Investment

On the back of the change of regulation in Texas another new equity crowdfunding platform has launched.

truCrowd Texas is a crowdfunding platform that allows all Texans, accredited and non-accredited, to invest in early-stage businesses. Companies from any industry can raise up to $1 million per year and non-accredited investors can invest up to $5,000 per offering.

Aside from offering a secure platform truCrowd Texas has also place a strong emphasis on educating its users.

Claudia Ecobici, truCrowd Texas' CMO, commented:

"Operating in a new industry with new regulations and new actors, we understand that our users might feel overwhelmed by all the information and requirements. We have made a priority out of assisting them before and during the capital raising and investing process. truCrowd offers an in-depth Support page, a blog, free e-books and newsletters which provide everything entrepreneurs and investors need to know about Texas equity crowdfunding, truCrowd's services and features and general startup practices. I encourage everyone to give it a try."

In the middle of February one of the first equity crowdfunding platforms to allow the participation of non-accredited investors was launched in Texas. MassVenture is a real estate crowdfunding platform and it has a pipeline of deals for the platform, including ventures from seasoned Texas real estate developers. 

John Morgan, the Texas State Securities Board Commissioner, recently predicted that Texas will become a national leader in US crowdfunding investment. The new crowdfunding regulations allow Texas based companies to raise up to $1 million per year, offerings must be carried out through a registered broker-dealer or a state approved portal. Crucially the new rules allow non-accredited investors to invest up to $5,000 per offering with no limits for accredited investors.

Several new platforms have launched in Texas since the state’s new equity crowdfunding regulations were passed in October 2014. This means that platforms don’t have to wait until Title III of the JOBS Act is passed to get non-accredited investors investing through their platforms. 

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