Discover the Support of Intrastate Crowdfunding in Texas
The anticipation of Texas equity crowdfunding continues to grow as each week passes. While there many who believe crowdfunding in Texas will succeed, there are always a group of naysayers who doubt and question something new and innovative. In today’s blog we are going to share three reasons why Texas equity crowdfunding will succeed that every naysayer will have a hard time disagreeing with.
Title III equity crowdfunding is dead in the water and happens to be the main example people use when they doubt intrastate crowdfunding. What these people don’t understand is the difference in scale and the allowance for state governments to create their own rules. Texas has seen over a dozen states enact intrastate crowdfunding before them and has been able to learn from their mistakes and achievements. This, in addition to the following three factors, is why their odds of success are so much higher.
Please enjoy our list of 3 Reasons Why Texas Equity Crowdfunding Will Succeed:
Texas is the #1 State for Business and Future Job Growth
Business forecasts for the state of Texas have been encouraging for several years. In fact, last November Forbes magazine named Texas the Best State for Future Job Growth & Economic Climate. One of the most prominent reasons for Texas receiving this honor is former Governor Rick Perry. During Perry’s tenure from 2000 until January 2015, the 10th longest gubernatorial tenure in U.S. history, Perry make job creation one of his signature objectives. And he succeeded with flying colors.
Perry’s time in office resulted in 2.1 million jobs. For the record, that is 30% of all the jobs added in the United States during this time and more than double of any other state. When the Forbes article was written, it noted that 413,000 jobs had been added over the last year. And as for the future forecasts, a Moody’s Analytics study showed Texas is expected to have the nations’ fastest annual job growth rate over the next five years (2.7%).
So how will this directly benefit Texas equity crowdfunding? The huge economy. The current $1.5 trillion Texas economy is projected to grow 4.1% each year for the next five years. That is good enough for second best in the nation but who cares about rankings – this is amazing news for Texas intrastate crowdfunding. More jobs and a booming economy mean more investors can participate in Texas equity crowdfunding and help more businesses succeed and create even more jobs. It is all great news for the state, its citizens and every company waiting to achieve their goals with an equity crowdfunding campaign.
Strong Support from the Texas State Securities Board
If you follow the truCrowd blog you know we’re big fans of the Texas State Securities Board. We have covered them a lot lately and for good reason – they’re huge supporters of Texas equity crowdfunding. We all know how big of a mess the SEC has turned federal Title III equity crowdfunding into so you can understand why the support and optimism of the TSSB is so important. To see lawmakers stand beside Texas entrepreneurs and investors and want to help them achieve their goals is another solid reason why Texas equity crowdfunding will succeed.
The Texas State Securities Board website has a section dedicated to Texas Intrastate Crowdfunding with official documents, news and articles to reference. Here you can find information on Rules, Forms, Guides and Other Materials. Everything a prospective Texas entrepreneur or investor could need is in one place. Be sure to bookmark this page for easy access in the future.
Many Texas lawmakers have spoken receptively of Texas intrastate crowdfunding and no one more than Texas Securities Commissioner John Morgan. In this article with Star Telegram, Morgan does not hold back his enthusiasm and supports it with facts. His words provide a confident and strong outlook from a point of authority which provides undeniable support to the cause:
“When we started looking into this (intrastate crowdfunding), there were three states where this was allowed. We’ve spent a lot of time looking at the rules in other states, along with talking to other experts in Texas and beyond.
There are 20 million Texans 18 or older who could invest up to $5,000 a year. That creates $100 billion in investment capital in Texas alone. Texas will be the largest equity crowdfunding state in America.”
Professional, Secure and Supportive Crowdfunding Portals
The TSSB has made it abundantly clear it is taking a harsh stance on cybercrime and the potential for fraud. Fraudulent equity crowdfunding campaigns are one of the chief concerns for the SEC (and a major reason Title III has stalled) and Texas is taking the same approach. To counteract these thieves the TSSB is requiring a long list of detailed documents for entrepreneurs, investors and crowdfunding portals. At truCrowd Texas we have been preparing our website and portal for over a year now and look forward to meeting all requirements and providing Texans a safe and professional equity crowdfunding portal.
For starters, we use a powerful 2048-bit SSL encryption as well as Extended Validation to protect the privacy and safety of all users. This is military-grade cybersecurity. Whenever truCrowd Texas receives a request to join from a new issuer or investor, we will run our own background check so you know everyone on the active portal is 100% verified. We will also use NDA’s (Non-Disclosure Agreements) whenever an investor wishes to view sensitive information on a campaign. By electronically signing an NDA they are entering a legal contract stating they will not share any confidential material, knowledge, or information of the source. We take many security measures and you can learn all about our processes on our Support Page. Feel free to “Browse by Topic” or search keywords such as “security” or anything else you would like to learn.
We are all very excited for Texas equity crowdfunding to get rolling. In addition to our excitement, the business and job forecasts, support of the TSSB and the availability of professional and secure websites are three excellent reasons why Texas equity crowdfunding will succeed. The sky’s the limit and at truCrowd Texas we plan on taking our issuers and investors to the top!
Thank you for reading and please leave your questions and comments below!