The fall elections impacted the bill somewhat as the chief sponsor and House Commerce Committee Chairman Representative Tom Murry lost his re-election bid, but we are grateful to Representative Murry for all his efforts to put this bill together and get it passed in the NC House. The bill had 18 other sponsors in the House last time around and we anticipate broad bi-partisan support in the new session. We also encourage the NC Senate to take up consideration of the bill on its own merits this time. If the Senate can find a way to do that, the NC JOBS Act exemption should be available to help businesses and investors grow the North Carolina economy and create jobs in 2015.
Texas Launches Intrastate Crowdfunding
Yesterday a new intrastate crowdfunding exemption very similar to the NC JOBS Act went into effect in Texas, which is one of over a dozen states that have passed similar laws over the last year and a half. Texas is the largest state so far to implement the exemption, and like North Carolina, it is a good sized state with a strong tech sector, a growing small business sector, low taxes, and generally attractive business climate. The exemption will give Texas a great new way to help finance small businesses and startups, and create jobs. We need to implement this in North Carolina as soon as possible.
The Texas State Securities Board website has details about the Texas Intrastate Crowdfunding Exemption. It also has some interesting information for prospective investors.
A new press release from Front Page PR outlines some of the benefits for the Texas economy that will come from investment crowdfunding in that state. We can look forward to similar benefits here in North Carolina once the NC JOBS Act has been enacted.
November 17, 2014 07:35 ET
Front Page PR Targets New Texas Crowdfunding Portals
Offers Texas Crowdfunding Portals (TCPs), Texas Equity Private Placement Issuers & Texas Investors Guidance on the Best Strategies to Launch and Market Successful Crowdfunding Campaigns in Texas
AUSTIN, TX--(Marketwired - Nov 17, 2014) - Today a new Texas Crowdfunding Exemption Rule goes into effect that will give the state yet another financial tool to encourage more people with creative ideas to start new businesses in Texas. For the first time in 80 years, businesses will be able to sell equity shares in their business to more than 20 million unaccredited investors who live in Texas via new online Texas crowdfunding portals using general solicitation.
"Already armed with a zero income tax, low overall tax burden, sensible regulations and low housing costs, Texas is now armed with an even more powerful financial tool, Equity Crowdfunding," said Robert Hoskins, Front Page PR's Crowdfunding Director. "This new small business financing tool will be the key to helping businesses, entrepreneurs, and new startups in Texas raise venture capital by selling equity shares in their companies to Texas residents."
Similar to the way that powerful and exclusive Silicon Valley venture capital firms built their wealth during the 1990s by betting on high-tech startups, every legal resident in Texas can now legally become a micro venture capitalist by investing up to $5,000 per deal in local Texas startups and existing businesses. As crowdfunded deals begin to go public, the wealth and economic development that will be created in Texas will be hard to match.
Texas offer investors a wide variety of industries to choose from including apps, aerospace, aviation, communications, information technology, bio-tech, life sciences, clean-tech, energy, oil & gas, high-tech, video games, film, entertainment, music and many other promising industries.
Already home to 1.7 million small businesses, gaining access to a market of 20+ million new potential investors combined with the SEC's legalization of general solicitation will make Texas the best and easiest place in America to start a new business and raise venture capital.
And the seeds for a bumper crop of new Texas Crowdfunding Portals are already being planted. SeedInvest.com/Texas, TexasCrowdfunding.com, TexasEquityShares.com are already in the various stages of building their new crowdfunding portals and filing their applications with the Texas State Securities Board, but soon they will be harvesting their first round of Texas crowdfunded startups.
"SeedInvest has worked primarily with angel, venture capital and other accredited investors to match them up with startups in Texas such as Virtuix, based out of Houston," said Marc Nathan, SeedInvest's Managing Director of Texas. "But the Texas crowdfunding exemption will allow us to reach a much wider audience of unaccredited investors."
"There are many great companies that connect technology startups with sophisticated investors, but we're focused on working with businesses that want to build and grow with support from investors in their own backyard," said Amy Forsyth, Texas Crowdfunding's CEO. "To accomplish this goal we're taking a different approach than most and plan to focus on featuring local small businesses and early-stage companies that are often overlooked, undervalued and under capitalized."
"Our crowdfunding portal will be seeking high-tech crowdfunding equity issuers that are focused on Internet technologies, e-commerce, smartphone apps, digital properties and platforms, Software as a Service (SasS), etc.," said Dusty Brogdon, Texas Equity Shares' CEO. "We are seeking to serve mid-tier crowdfunding equity issuers with a minimum project value of $200,000+ with a long-term goal of taking the business public within two years."
"Texas is about to see a dramatic surge in demand for Texas crowdfunding portals, equity private placement issuers and investors. Front Page PR is ready to help these companies bring their products and services to the Texas marketplace," Hoskins continued. "Armed with the right community outreach programs needed to educate entrepreneurs and investors on the new crowdfunding rules, the possibilities for small business formation and growth in Texas will be limitless."
Front Page PR provides a portfolio of crowdfunding marketing communications services, which will be instrumental in bringing these new crowdfunding portals to life and helping them launch successful crowdfunding campaigns for their fundraising campaign managers, including:
- Crowdfunding portal selection
- Crowdfunding deal structure
- Crowdfunding disclosure documents
- Crowdfunding profiles and pitch videos
- Community outreach strategies
- Advertising campaigns
- Email marketing campaigns
- PR/media relations campaigns
- Investor education programs