Williamson County group launches crowdfunding website

Jun 25, 2014
Austin Business Journal

Williamson County has launched an intrastate crowdfunding website developed by the Texas Entrepreneur Network

The website, Wilcofundingportal.com, is designed to provide local startups and entrepreneurs a source of capital for launching and growing their business. It’s also expected to make it easier for investors to locate businesses and projects to financially back, according to a statement issued by the county

Crowdfunding enables startups to publicly solicit small investments from dozens of individuals instead of seeking larger private placements from venture capital firms or angel investors. Website operators such as Kickstarter.com have fueled the popularity of the approach in recent years

In 2012, the federal JOBS Act — the Jumpstart Our Business Startups Act — included crowdfunding rule changes in an attempt to spark innovation and revitalize the national economy during the recession. Individual states are requesting exemptions to the proposed federal rules and establishing their own

In the Lone Star state, crowdfunding rules being considered by the Texas Securities Board include allowing unaccredited investors to invest $5,000 per year in a company. Also, audited financial statements would only be required of companies raising more than $1 million

The Securities Board has been collecting information for a year and plans to finalize its rules in August or September

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