Last week, after a vote of the State Securities Board, Texas became the lucky 13th state to allow equity crowdfunding. Jumping the gun on nationwide rules authorized in 2012 but still not put in place by the SEC, the new statewide setup will allow companies to raise up to $1 million a year through approved “portals,” or crowdfunding websites. Any Texan will be able to invest up to $5,000 per company, but qualified investors (individuals with assets of more than $1 million — minus their home — and $200K in annual net income) will be able to invest any amount.
Unlike donation-based crowdfunding efforts popularized on sites such as Indiegogo and Kickstarter, portals operating under the new rules will turn subscribers into owners of the projects they invest in. The rules, which go into effect next month, apply to any type of company investment, from restaurants to local businesses to real estate — as long as the investors are Texas residents, the companies are Texas companies, and the crowdfunding website is based here. A Houston beta site hoping to begin offering stakes in “corporate backed single tenant leased properties” — such as the dummy McDonald’s Net Lease portrayed in the image above — has already been announced.
- Texas Approves Equity-Based Crowdfunding Rules [Silicon Hills]
- Texas Intrastate Crowdfunding [Texas State Securities Board]
- InvestPeer Launches Equity Based Crowdfunding Beta Website in Texas [InvestPeer]