For those wanting to issue equity through intrastate crowdfunding:
Companies may raise up to $1 million per 12-month period
Offerings must be carried out online through a registered dealer or crowdfunding portal.
The company must be a non publicly-traded Texas entity (see below) and can only offer the securities to Texans (see below for more specifics).
The company must have a defined business plan, investment goals and list disclosures. This means you will have to post a summary of the offering
on the portal at least 21 days before any securities may be sold. The disclosures must include risk factors, a description of the issuer’s business, operations,
and management, a description of the securities and other material information.
Customary bad actor disqualifications apply.
Non-Accredited investors may contribute up to $5,000 per offering.
To obtain more than $5,000 from accredited investors, the company must verify the investor qualifies as “accredited.”
Investor funds must be placed in escrow until the specified minimum offering amount has been raised.
You are allowed to provide a limited notice about your efforts and provide a link to the portal, but you can only distribute this to investors located in Texas.
You do not have to publish reviewed or audited financial statements unless audited financial statements are already available for any of the three years prior to the offering. Instead, the CEO can certify the financial statements are accurate and complete as of the date of the offering.