Texas is now one of 13 states where small businesses are allowed to solicit funds in exchange for equity.
This news is huge for startups trying to bootstrap their businesses or find other sources for capital — and more proof that Texas is just where we get business done.
“When we started looking into this, there were three states where this was allowed,” said Texas Securities Commissioner, John Morgan in a recent interview. “Now 12 states have passed rules or legislation to allow it. We’ve spent a lot of time looking at the rules in other states, along with talking to other experts in Texas and beyond.”
Previously, crowdfunding was limited in that project backers could only receive promotional items for their campaign contributions.
The decision is to be finalized at the end of August. Check out further details here.