The Texas State Securities Board is expected to approve legislation which will permit crowdfunding in the Fall of 2014, making Texas the 13th state to allow individual investments to be made over the internet.
Per Wikipedia, “Crowdfunding is the practice of funding a project or venture by raising monetary contributions from a large number of people, typically via the internet. ” The concept began in the U.S. with companies like ArtistShare, Chiplin, EquityNet, Pledgie, Sellaband, IndieGoGo, GiveForward, FundRazr, Kickstarter, RocketHub, Fundly, GoFundMe, Microventures and Fundageek.
The proposed rules will permit small Texas businesses to raise up to $1 million a year from the public. Investors can invest up to $5,000 per year in exchange for stock in the company. The online offerings will be conducted through state-approved web-portals. Operators of the portals must be Texas residents and are subject to background checks.
Rex Securities Law provides nationwide representation to investors seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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