Start and Expand Your Business with Equity Crowdfunding
If you need a bigger grill for your smokehouse or want to add a second location to your coffee shop, you don’t need the help of a venture capitalist. And to be honest, they probably won’t give you the time of day after glancing at your proposal. The fact is small businesses in Texas don’t need $10 million of VC capital to succeed – they need between $10,000 and $1,000,000. They also don’t need the hassle of setting up meetings with VC’s and the logistics of traveling back and forth. All of your capital needs can be satisfied with Texas intrastate crowdfunding without the big song and dance. And we will tell you why and how in today’s blog.
Even though equity crowdfunding is now legal in The Lone Star State, Texas intrastate crowdfunding is still new to most entrepreneurs. We first broke the news last August about Texas becoming the 13th crowdfunding state, and right now you can either raise capital or invest in companies via equity crowdfunding. There is a lot more to it than simply asking for money, but it is a less painful process than presenting to VC’s and the odds of reaching your capital goal is much higher. Intrastate crowdfunding is also an opportunity to get your community involved and turn them into equity shareholders. This creates pride and loyalty and brings everyone closer while you get the money you need.
At truCrowd Texas we are thrilled to officially be open for business and look forward to serving the needs of small businesses in Texas for years to come. To expand more on why Texas intrastate crowdfunding is perfect for small businesses, please enjoy the following:
Raise Funds from Your Community
In a recent blog about equity crowdfunding advice before launch we stressed the importance of reaching out to family and friends. This is sound advice and should be followed, but if you have a solid community base you should reach out to them as well. Using an example I mentioned above, let’s say you own a smokehouse and need a grill twice the size of the one you have. Business has been booming and you simply can’t keep up with demand. The only thing is, your budget can’t handle such a large one-time purchase in the near future.
The answer: Texas intrastate crowdfunding. Chances are you are on a first-name basis with the majority of your customers. They obviously love your food and probably tell their friends about it. There is no harm in letting them know you are about to start an equity crowdfunding campaign with truCrowd Texas to buy a new smoker for the restaurant. As you explain it to them, be sure to let them know they are pledging money for shares in the company and it is not a donation. They will soon be equity shareholders in their favorite BBQ joint! As equity shareholders they will immediately feel that pride and loyalty of being a part of the business. Every time they eat there they will not only be enjoying delicious brisket – they will be supporting their own investment. It’s a Win-Win for everyone!
Avoid the Hassle of Venture Capitalists
Depending on the size of your business, you may or may not have dealt with Venture Capitalists before. We are not giving the entire industry a bad rap, but if you don’t need millions of dollars Texas intrastate crowdfunding is a much easier way to accomplish your funding goals. The Texas State Securities Board developed a very detailed set of rules that does require a lot of information on your end but not to the extent of what the VC process would be like. Plus, you’re not pitching to 3-5 large conglomerates. With truCrowd Texas you will be pitching to thousands, even millions, of fellow Texans who are looking for opportunities just like yours. All from one campaign page.
After you set up your entrepreneur profile and campaign page you can utilize truCrowd Texas’ internal communications system to share your offering. We offer a Twitter-like feed for you to stay in touch with current and potential investors who will be your main targets. There is no pressure to impress one or two representatives of a big time VC firm in a 60 minute presentation. You have 60-90 days to work your offering and reach your funding goal. The TSSB allows you to advertise your offering on traditional social media such as Twitter and Facebook as well. Once you acquire the base investments of your family, friends and community, you can market your fellow Texas instead of a big wig VC.
Get Personal Help and Attention from truCrowd Texas
Call us. Chat on our website. Email us. Our team is 100% focused on customer service and will prove to you we stand by our commitment. We have spent over a year getting prepared for equity crowdfunding and look forward to passing the knowledge on to our issuers and investors. We also offer a variety of educational articles, videos and blogs for you to reference.
In addition to Texas equity crowdfunding, we know a lot about being a small business because we are one, too. Helpful resources such as America’s Small Business Development Center, the Texas Workforce Commission and the Texas State Securities Board are instrumental in making the right choices for your business. There is a ton of information available and if you need assistance finding it, we are here to help you one-to-one.
We hope you have a clearer picture on why Texas intrastate crowdfunding makes more sense for small businesses. Thank you for reading and please leave your questions and comments below!