February 7, 2014
Crowdfunding was featured today on WOAI 1200 News, following the announcement by Representative Villareal that the legislature will receive an interim charge to investigate the possibility of bringing investment crowdfunding to Texas.
State Representative Mike Villarreal (D-San Antonio), says the House Committee on Investments and Financial Services will look into the costs and benefits of implementing an 'intrastate equity crowd funding system.'
Equity crowdfunding allows ordinary people, anybody who wants to participate, to create something of value. Presently, accredited investors can invest in startup companies today but the average citizen cannot unless they are part of a "friends and family" round initiated by the startup company.
This is a huge opportunity for Texas, which may become known as a center of crowd funding with the proper state-level regulations and laws. If so, crowdfunding could be a powerful tool to lure the next generation of high tech startups away from Silicon Valley, where many of them locate simply because that's where the majority of angel investors are located, and we may be able to convince startups to locate their companies in Texas.