Business Funding Texas is a Texas Intrastate Crowdfunding portal. The state of Texas passed its Intrastate Crowdfunding
law at the end of 2014, allowing any resident of Texas to invest in a
startup. Unaccredited investors are
limited to $5K/person/deal/year. The law
is much simpler than the JOBS Act recently passed by the SEC which requires
more reporting, more detailed income tests, and financial audits. Accredited investors in Texas can invest as
much as they want.
The Intrastate Crowdfunding raise works well for
consumer facing businesses that have a large network of unaccredited
investors. Microbreweries, wineries,
distilleries, and consumer product good companies are ideal candidates. The fund raise is primarily an exercise in
having your customers invest in your business.
The raise strengthens your business beyond just funding in that it
builds a strong group of enthusiasts and advocates around your business who
will then support and promote your business to others.
Also, the experience of running a crowdfunding
campaign can teach a new company a great deal about sales and marketing. Crowdfunding is essentially investment
marketing. One learns how to create and
run a campaign which can prove valuable in building the skills to sell and
promote the product.
Businesses which can raise funding from their
customers/clients are well positioned to raise additional money from accredited
investors as it demonstrates a loyal following for you and your business.
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