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Villarreal says equity crowdfunding is around the corner

posted Sep 18, 2014, 1:00 AM by J Shaw   [ updated Sep 18, 2014, 1:00 AM ]
Texas may soon join a handful of other states that allow equity-based crowdfunding.

The Texas State Securities Board is expected to approve a rules change next month that would allow small, non-accredited investors to receive equity, or a financial stake in a company, in return for a nominal investment.

State Rep. Mike Villarreal, D-San Antonio, who chairs the House Committee on Investments and Financial Services, spurred lawmakers to take up the issue at the urging of local San Antonio entrepreneurs, Nathan Roach andRondero De Mosier.

Roach and De Mosier are preparing to launch a web portal through which startup companies could seek equity-based crowdfunding under the new state guidelines.

“Texas’ investment crowdfunding model provides innovative entrepreneurs new avenues of access to capital,” Villarreal said. “It also allows backers to make a return on their investment.”

The new rules are expected to be approved at an Oct. 22 meeting of the Securities Board, and to go into effect by the end of November.

Posted from : http://www.bizjournals.com/sanantonio/news/2014/09/16/villarreal-says-equity-crowdfunding-is-around-the.html