Search results for 'texas equity crowdfunding '

MassVenture’s First Texas Equity Crowdfunding Investment Opportunity Now Available to Everyone in Texas

29 Apr

Located in the Dallas-Fort Worth area, the first equity crowdfunding deal will allow any Texan to invest in a multi-million dollar real estate project for as little as $500

 By Robert Hoskins

Cedar Hill, Texas – San Antonio-based technology start-up MassVenture, Texas’ first approved investment crowdfunding portal, launched the state’s first ever Texas investment crowdfunding project. Located in the Dallas-Fort Worth area, this project will allow any Texan to invest in a multi-million dollar real estate project with as little as $500.

MassVenture, Texas’ first approved investment crowdfunding portal, launched the state’s first ever Texas investment crowdfunding project

MassVenture launched the state’s first ever Texas equity investment crowdfunding project, which is limited to Texas investors

The Cedar Hill, Texas real estate investment on MassVenture serves as the first publicly-issued investment crowdfunding project in the state. It will provide for construction of a senior living campus and is designed to meet a growing demographic with an under-served need in a community that currently has more than 340,000 residents living within the primary service area.

“In the crowdfunding market, real estate investment looks to be one of the top sectors for growth and returns,” said Amir Mirabi, VP of Business Development for MassVenture. “Texans love to help one another, and so do we. As we say, It’s Your State, Own It.”

With the posting of this project, MassVenture becomes the first state-approved crowdfunding portal to list a project. Investors who sign up for free on the portal can view the offering for a state-mandated 21-day pre-funding period before the actual crowdfunding campaign commences.

Investors can ask the equity-offering issuer questions regarding the project, the property, the principals or any other matters in advance of investing.

Nathan Roach, MassVenture CEO, added, “Crowdfunding is a great tool for quickly mobilizing interest and investment into Texas-based projects, and the transparency and wisdom of the crowd is a great way for Texans to collectively pool their resources and see a project through to fruition. We see real estate crowdfunding as a great community and economic development tool. What better way to Invest in Texas than to truly invest in Texas?”

MassVenture’s principals, spanning legal, technological, finance and economic development backgrounds, helped craft and advocate the newly enacted state crowdfunding rules that came into effect in November of 2014, making Texas the 13th state in the nation to have such rules.

Investment crowdfunding works similarly to rewards and donations-based crowdfunding, but instead of products, consumers get to purchase ownership in companies and/or their projects, with the prospect of considerable returns. The new state-based crowdfunding rules are unique in that they also open up investment to a new class of investors – non-accredited investors with a net worth of less than $1 million and income of less than $200,00 per year – who traditionally have been left out of early stage venture funding under current federal regulations.

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Front Page PR Seeks Startups at Texas Incubators Accelerators that Would Like to Try a New Method of Raising Seed Investment Capital via Texas Equity Crowdfunding Sites

23 Feb

Equity crowdfunding campaigns have the ability to help entrepreneurs raise enough seed capital to pay for a co-working space and put together marketing and business development plans to gain market traction

By Robert Hoskins

Austin, Texas – Front Page PR, in tandem with the Texas Crowdfunding Network, is now offering entrepreneurs, startups and businesses in Texas the opportunity to learn how to use top Texas crowdfunding sites to raise enough seed investment capital to get their companies up and running. Anyone interested in a free 30-minute crowdfunding consulting session to learn more about crowdfunding should call Robert Hoskins at (512) 627-6622 or send a tweet to @Crowdfunding_PR.

Front Page PR Helps Startups and Small  Businesses  Plan Successful Texas Equity Crowdfunding Campaigns

Front Page PR Helps Startups and Small Businesses Plan Successful Texas Equity Crowdfunding Campaigns

“Various Texas incubators and accelerators offer attractive deals that promise to provide $50,000 of matching funds and another $50,000 from venture capital partners for any company as long as they can bring their own $50,000 to the table,” said Robert Hoskins, the Texas Crowdfunding Network’s Executive Director. “The problem is that most startups are bootstrapping their companies and do not have enough money to qualify for these types of expensive cash-up-front accelerator programs.”

“Even though incubators/accelerators have the best intentions of helping startups,” Hoskins added. “There are simply too many startups and not enough seed investment capital to go around. According to a leading Austin Accelerator Research Report even the top Texas accelerators rarely invest more than a total of $150,000 per year in startups. At $50k per deal that means only enough funding for three companies per year.”

Recognizing this widespread problem, the Texas State Securities Board created a new source of alternative financing calledEquity Crowdfundingthat provides businesses, including Texas incubators and accelerators, with a new way to raise enough seed investment capital to fund more companies, create more jobs and stimulate more economic development in Texas.

Equity crowdfunding sites now allow businesses to build an online business pitch called a “crowdfunding profile,” which can be viewed by prospective investors 24-hours-a-day, 7-days-a-week. Investors that like deals they find can purchase equity shares via online Texas crowdfunding sites in a similar manner to how Kickstarter and IndieGoGo or ecommerce sites work.

It is completely free to build a crowdfunding profile. And spending as little as $5,000 to $20,000 to produce the necessary pitch deck/video, disclosure documentation and targeted marketing campaigns to drive investors to crowdfunding profiles makes it possible for any Texas business raise up to $1,000,000 of seed investment capital per year.

Every adult in Texas can now invest up to $5,000 per year in equity investment deals they like. At $5,000 each, a small business only needs 200 investors to raise up to $1 million per year. Marketing campaigns with an average 3% response rate have the potential to drive up to 600,000 Texas investors to a company’s crowdfunding profile. And then, it only takes a very small conversion rate of those investors investing anywhere from $500 to $5,000 each to reach the desired crowdfunding goal.

When trying to raise seed capital most angel investors like to see some sort of traction in the marketplace. Smart companies will only try to raise enough money to deliver a finished product/service that can be sold as well as some marketing programs to begin customer acquisition.

After a successful first round, companies that spend their money wisely and build a solid customer base will be able to raise larger secondary and tertiary rounds as they gain momentum in the marketplace.

“Raising multiple rounds of funding to stair step their way into a successful business model is a good strategy to develop a loyal base of customers and crowdfunding investors,” Hoskins commented. “It is also a great way catch the eye of angel investors and venture capitalists who will be watching Texas Crowdfunding sites for rising stars that are still at an early stage, but growing quickly.”

Front Page PR has a 25-year track record of helping small startups launch their businesses and begin rolling out their products and services to local, regional, national and global markets. Using integrated marketing campaigns that harness the power of targeted content marketing, email marketing, PR and social media, Front Page PR can help any small business build a loyal customer base and begin preparing for a successful equity crowdfunding campaign. Front Page PR offers up to a 50% discount on various marketing services for qualified members of Texas-based co-working spaces, incubators and accelerator programs.

If your business would like to learn more about the Texas Equity Crowdfunding industry, please join our free Texas Crowdfunding Network Meetup Group or visit our Texas Equity Crowdfunding Blog to read more about how to setup a Texas Crowdfunding Portal or Issue a Texas Equity Crowdfunding Offering. We can also help setup Equity Crowdfunding Community Outreach Programs and Crowdfunding Training Programs to educate members of chambers of commerce, SBDC offices, economic development councils and large business associations on how to capitalize on equity crowdfunding to fund startups that need access to seed investment capital. 

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Contact:
Robert Hoskins

Front Page PR
(512) 627-6622
@Crowdfunding_PR
www.linkedin.com/in/roberthoskins

1st Texas Equity Crowdfunding Community Outreach Event to Unveil Texas Crowdfunding Portals at Texas St. University

11 Feb

Learn How to Raise Money for Startups and Businesses with Texas Equity Crowdfunding Sites and a Crowd of 20 Million Accredited & Unaccredited Investors


Texas Equity Crowdfunding Event Agenda

Mission: To educate entrepreneurs, startups and any existing Texas-based business on how they can utilize a Texas Crowdfunding Portal (TCP) to market a Private Placement Memorandum (PPM) to over 20 million non-accredited and accredited Texas investors to raise startup venture capital.

Tonight’s guest speakers will cover the following information:

  1. Information on the new Intrastate Texas Crowd Exemption Rules
  2. What information needs to be filed with the Texas State Securities Board
  3. What type of disclosures are required by every Texas crowdfunding platform
  4. What type of marketing can be used to raise awareness for equity investment opportunities
  5. What qualifications need to be met before investing on Texas crowdfunding platforms
  6. What precautions should be taken prior to making any financial investments

Crowdfunding Platforms:

Crowdfunding Escrow Service:

Question & Answer Session:

  • Panel Discussion Q&A

Research Links:

Texas State Securities Board (TSSB) Crowdfunding Rules:
http://www.ssb.state.tx.us/Important_Notice/Texas_Intrastate_Crowdfunding.php

Texas Crowdfunding Network:
http://www.meetup.com/austin-crowdfunding-network

Texas Crowdfunding Blog:
https://crowdfundingpr.wordpress.com

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Contact:
Robert Hoskins

(512) 627-6622
@Crowdfunding_PR

New Texas Equity Crowdfunding Investment Syndicate Created to Help Unaccredited Investors Learn How to Follow Successful Private Equity Investors

18 Jan

 Join the Texas Equity Crowdfunding Syndicate™ to Follow Experienced Private Equity and Seed Capital Investors that Are Investing in Private Placement Memorandums (PPMs) Being Offered to Unaccredited Investors by Top Texas Equity Crowdfunding Sites

By Robert Hoskins

Austin, Texas – If you are new to the world of equity crowdfunding, then one of the safest ways to invest in new Texas startups is to join the Texas Equity Crowdfunding Syndicate™, which is a large group of unaccredited investors that follow the lead of experienced, seasoned and accredited equity investors that have been investing in private equity and seed investment deals for many years with a higher than average track record.  Join our crowdfunding investment syndicate by filling out the form at the bottom of this page. 

Texas Equity Crowdfunding Investment Syndicate for Unaccredited Investors

Texas Equity Crowdfunding Investment Syndicate Allows Unaccredited Investors to Follow Professional Investors

The Texas Equity Crowdfunding Syndicate follows the most prestigious accelerators and incubators in Texas that continuously shop for, discover, and curate deals from the best startups, entrepreneurs and inventors that are seeking seed investments and venture capital.

For the past 80 years, private equity  investments have been solicited behind closed doors through registered broker/dealers that were only allowed to market private equity deals to a small pool of accredited investors.

But now that the SEC has lifted the ban on General Solicitation, equity crowdfunding sites can now market private equity investment opportunities to more than 8.7 million accredited investors in the United States.  

And for Texas-based startups and businesses, the Texas State Securities Board (TSSB) has now legalized equity crowdfunding, which allows more than 20,000,000 Texas residents 18 years or older to invest up to $5,000 per deal in as many companies per year as they want.  That means every Texas business now has the ability to tap into more than $100 billion of Texas venture capital by issuing offers on Texas crowdfunding portals.

To get started and learn how to become a micro venture capitalist, simply fill out the form below and detail what type of crowdfunding investments you are interested in exploring.  All contact information will be kept extremely confidential, but will allow us to help issuers on various Texas crowdfunding sites and portals to send you valuable PPM investment deals for your review on new equity, debt and convertible note offerings.

This information will be delivered via highly targeted, double opt-in newsletters that will only deliver information on the precise information requested.

Hint: Don’t invest in any industry that you don’t fully understand

At any time, investors can change their investment interest categories or delete their name completely from our general solicitation marketing database if they get bombarded by opportunities that do not meet their specific investment objectives.

 

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Texas Equity Crowdfunding Disclosure Requirements

11 Nov

Texas Crowdfunding Issuer
Disclosure Requirements

Texas Approves Equity Crowdfunding Exemption for Non-Accredited Investors

 

Here are the Texas Crowdfunding Issuer Disclosure Requirements for issuing an equity crowdfunding private placement memorandum (PPM) in the state of Texas:

(i) Disclosure statement. A disclosure statement must be made readily available and accessible to each prospective purchaser at the time the offer of securities is made to the prospective purchaser on the Internet website. The disclosure statement must contain all of the following:

(1) Material information and risk factors. All information material to the offering, including, where appropriate, a discussion of significant factors that make the offering speculative or risky. Guidance on the categories of information to include can be found by reviewing the small business offering to be submitted to the information provided by the Texas State Securities Board on its Internet website. Topics to be addressed include, but are not limited to:

(A) general description of the issuer’s business;
(B) history of the issuer’s operations and organization;
(C) management of the company and principal stockholders;
(D) how the proceeds from the offering will be used;
(E) financial information about the issuer;
(F) description of the securities being offered; and
(G) litigation and legal proceedings.

(2) Disclosures. The issuer shall inform all prospective purchasers and investors of the following:

(A) There is no ready market for the sale of the securities acquired from this offering; it may be difficult or impossible for an investor to sell or otherwise dispose of this investment. An investor may be required to hold and bear the financial risks of this investment indefinitely;

(B) The securities have not been registered under federal or state securities laws and, therefore, cannot be resold unless the securities are registered or qualify for an exemption from registration under federal and state law.

(C) In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved; and

(D) No federal or state securities commission or regulatory authority has confirmed the accuracy or determined the adequacy of the disclosure statement or any other information on this Internet website.

(3) Financial statements. Issuers must provide current financial statements certified by the principal executive officer to be true and complete in all material respects. If the issuer has audited or reviewed financial statements, prepared within the last three years, such financial statements must also be provided to investors.

Click here to read the Texas Crowdfunding Issuer Rules.

How to Become a Texas Crowdfunding Issuer (TCI):

To get conduct a Texas equity crowdfunding campaign, Texans need to fill out a Texas Crowdfunding Issuer (TCI) Exemption Notice Form 113.17 and file it with the Texas State Securities Board.

How to Start a Texas Crowdfunding Portal (TCP):

To launch a Texas crowdfunding portal, Texans need to fill out a Texas Crowdfunding Portal (TCP) Registration Form 113.15 and file it with the Texas State Securities Board.

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Top 10 Texas Equity Crowdfunding Sites (Portals)

22 Jul

Top 10 Equity Crowdfunding Sites for Accredited and Non-Accredited Investors in Texas

By Robert Hoskins

Austin, Texas – We set out to write a story on the Top 10 Equity Crowdfunding Sites in Texas, but according to Google there are only few rewards-based and equity-based crowdfunding sites (see lists below) that are planning to serve the Texas market place.

Suffice it to say that there is a huge opportunity for people with finance, legal and marketing experience to get into the Texas crowdfunding business.

Texas ranks #2 only to California by population with an estimated 26 million people, and approximately 20 million of those are 18+ years old.  When the Texas Intrastate Crowdfunding Exemption Rule goes into effect in November 2014, unaccredited investors will be able to invest up to $5,000 per year in start-ups and existing businesses, which represents a potential investment capital pool of $100 billion.

If you’d like to explore what it takes to setup a crowdfunding site in Texas, please give us a call at (512) 627-6622.

Top 10 Texas Sites – Unaccredited Investors:

Rank © Front Page PR   Global Rank
#1 www.texas.trucrowd.com     485,665
#2 www.nextseed.com     992,563
#3 www.massventure.com  1,388,521
#4 www.texascrowdfunding.com  3,315,899
#5 www.investpeer.com  5,659,309

Source: Feb 2015 SimilarWeb Website Statistics

Top 10 Texas Sites – Accredited Only Investors:

Rank © Front Page PR   Global Rank
#1 www.seedinvest.com    184,226
#2 www.microventures.com    241,967
#3 www.investx.com    403,141
#4 www.dreamfunded.com 1,267,585
#5 www.texasenetworks.com 1,721,280
#6 www.realtywealth.com 2,647,893

Contact us at 512-627-6622 if you would like to add your Texas crowdfunding portal to our list.

More Top 100 Crowdfunding Lists:

 

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Crowdfunding PR Raising Money via Wells Fargo Project Work to Build the Very 1st Equity Crowdfunding Co-Working Space, Incubator, Accelerator and Training Facility Center in Austin, Texas

22 May

Click on this image to vote YES for our Crowdfunding Coworking Incubator Accelerator Training Facility

Click on this image to vote YES for our Crowdfunding Co-working Incubator, Accelerator and Crowdfunding Training Facility on Wells Fargo’s Work Project Contest for Small Businesses

Show our crowdfunding campaign some love by clicking here and simply voting “Yes,” and then share this story with your friends on social media. Your one vote will help us WIN!

  By Robert Hoskins

Austin, Texas – Front Page PR’s 2015 Mission is to teach local communities how to buy distressed properties such as vacant warehouses and strip malls and invest a little bit of money to turn these properties into crowdfunding co-working spaces where entrepreneurs and startups can congregate and dream up new product/service ideas.

The Wells Fargo Works Project for Small Business

The Wells Fargo Works Project for Small Business. Please Click to Vote YES!

Utilizing co-working spaces, Front Page PR can teach startups via crowdfunding training classes how to use a new finance tool called “Equity Crowdfunding” to raise the sufficient seed capital needed to setup a business, transform their creative ideas into prototypes, pay for the very first manufacturing production run, and then convert these companies from fledgling startups into successful revenue generating machines.

Equity Crowdfunding was legalized in 2012 by the JOBS Act. By October 2015, the SEC should release the final Title III equity crowdfunding rules. Startups will then be able to use General Solicitation market their investment opportunities to over 180 million non-accredited investors throughout the United States. The result? Leading finance experts and venture capitalists agree that the crowdfunding industry will grow quickly into a $300 billion per year industry.

The biggest marketplace challenge is that 99% of the population is unaware of crowdfunding and will need to be trained on how to invest in new startups and how to raise money using equity crowdfunding campaigns. Our crowdfunding classes are complete, but the biggest problem we face is how to pay for an actual crowdfunding training facility, converting it into a co-working space, staffing it with experts, and then marketing the facility to the general public.

We would like to spend the $25,000 Wells Fargo prize to start the process of setting up a Crowdfunding Incubator/Accelerator facility for small businesses and utilizing it over the next two to five years to teach people how to use crowdfunding sites to raise seed investment capital. The business model should fund itself in less than 12 months based on monthly co-working memberships alone, but we need enough money to get things started.

Our Incubator will provide a directory of crowdfunding experts that mentor entrepreneurs/startups on how to use donation-based or rewards-based crowdfunding to raise enough money on sites like GoFundMe.com, Kickstarter.com, or IndieGoGo.com to get a business up and running. Our crowdfunding training classes will show startups the step-by-step process of how to conduct successful crowdfunding campaigns.

Our Accelerator will provide a directory of legal, finance and securities experts that will help businesses take their companies to next level by selling equity shares or debt in their company to investors to raise even more money. The investor training classes will show new, non-accredited investors how to vet deals and ride the coattails of super angels by utilizing investment syndicates.

Once the Incubator/Accelerator is established and producing successful startups, we plan to license the business model so that others can replicate this crowdfunding training business template anywhere in the United States, providing a tremendous boost to the US economy.

Why launch a Crowdfunding Training Center? After serving as the Director of Corporate Communications for several Fortune 50 companies, I was bitten by the entrepreneurship bug and jumped off the corporate ship in 2001.

Since then I have thrived on the joy of building industries one small company at a time and the love for sharing my accrued knowledge gained from a vast array of B2B industries, international sales & distribution channels and working with media organizations to maximize publicity.

My track record includes building a broadband wireless industry in 2001 with the Broadband Wireless Exchange Magazine, an Arizona solar industry in 2009 with the Arizona Solar Power Society and I have been working for the past three years on building a crowdfunding industry with Crowdfunding PR to score a hat trick in 2015 when the SEC approves the title III equity crowdfunding rules.

Please support our fundraising campaign to build the 1st Crowdfunding Co-Working Space, Incubator, Accelerator and Training Center in Austin, Texas. Click here and vote yes!

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Want to help us build a Crowdfunding Training Center?

MassVenture.com Opens Real Estate Equity Crowdfunding Site in San Antonio, Texas

19 Feb

All Texas investors can now use real estate crowdfunding portals to build prosperity and financial security utilizing lots of research, due diligence and careful investment strategies

By Robert Hoskins

San Antonio, Texas – MassVenture’s new equity crowdfunding site www.massventure.com allows all Texas investors – accredited and non-accredited – to gain equity in Texas-based ventures. The Texas State Securities Board, which reviews and regulates Texas crowdfunding portals, recently approved MassVenture’s application, making it the first approved fundraising portal of its kind in the state.  The San Antonio-based equity crowdfunding startup allows entrepreneurs and investors to participate in the development and ownership of ventures across the state.

MassVenture Opens Real Estate Equity Crowdfunding Site in San Antonio, Texas

MassVenture Opens Real Estate Equity Crowdfunding Site in San Antonio, Texas for All Texas Investors

MassVenture already has several ventures from seasoned Texas real estate developers being readied for release. Attorney Nathan Roach, MassVenture Co-Founder and CEO, and one of the primary leaders who helped shape the new Texas crowdfunding rules, points out the great impact in the investment community.

“This is unprecedented that all Texas investors, regardless of their financial status, can access direct ownership of local and community based investment,” Roach said. “We are honored and excited to be Texas’ first and only approved equity crowdfunding portal.”

Texas State Securities Board Commissioner John Morgan, whose agency enacted the rules, recently predicted that Texas will become a national leader in crowdfunding investment and growth. The new crowdfunding rules allow Texas-based entrepreneurs to raise up to $1 million per year. Offerings must be carried out through a registered broker-dealer or state-approved portal like MassVenture. Texas-based non-accredited investors may contribute up to $5,000 per offering, with no individual limits for accredited investors.

“We believe equity crowdfunding will catalyze new and wider prosperity, entrepreneurship and job growth in Texas,” Roach said. “With a population of more than 26 million, Texas is a massive market for companies wishing to raise capital through crowdfunding, and MassVenture serves as a great gateway for all Texans to participate in funding growth in their communities and the state at large.”

Spearheaded by experts in the legal, technology, banking and economic development fields, MassVenture has grown fast, with entrepreneurs and investors equally enthusiastic about the platform.

Amir Mirabi, most recently Governor Perry’s Director of Small Business, has joined MassVenture as VP of Business Development and expressed equal excitement about the industry.

“Capital sourcing, cost and readiness have long been challenges for growing Texas businesses,” Mirabi said. “The new [crowdfunding] rules allow portals like MassVenture to level the playing field for skilled entrepreneurs seeking funds, and smart investors seeking returns.”

Mirabi mentioned that MassVenture is designed to deliver a dynamic solution for new real estate projects with the ability for investors to quickly evaluate risk and return opportunity. The platform also provides entrepreneurs a solid platform for exercising statewide capital raises that can often help to leverage additional traditional capital pools like bank loans.

Mirabi added that owning and investing in real estate has long helped build prosperity and financial security for Texans.

Reflecting on the impact and importance of the new rules to Texas, Roach noted that MassVenture’s platform offers all Texans – entrepreneurs, investors, friends and neighbors – a great vehicle to help build the future of Texas communities.

“Traditionally the domain of the wealthy, the recent changes in Texas law open the investment floodgates for all Texans – and that’s a game-changer,” said Roach. “Equity crowdfunding provides a clear and promising new path for capital access and investment in Texas ventures.

“As the first state-approved portal, we encourage all investors and entrepreneurs to engage in this new and exciting opportunity at their earliest convenience,” Roach said.

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MassCatalyst Plans to Launch New Auction-Based Equity Crowdfunding Platform in January 2015 in Dallas, Texas

17 Dec

Unlike Rewards-based or Donation-based Crowdfunding, MassCatalyst’s Auction-Based Crowdfunding Portal Will Allow Unaccredited & Accredited Texas Investors to Bid on Equity Shares

By Robert Hoskins

Dallas, TexasMassCatalyst plans to launch a new type of crowdfunding portal that allows investors to bid on equity shares in Texas-based companies in January 2015. The MassCatalyst platform will facilitate both equity and debt crowdfunding ventures for startups and mature companies alike.

MassCatalyst previewed its company back in September at TechCrunch Disrupt (San Francisco) and the platform’s launch couldn’t be more timely. In October, the state of Texas approved rules governing intrastate crowdfunding, which will allow non-accredited investors to take part in investment crowdfunding. Texas is the latest in a series of states seeking to eliminate wealth and income requirements for investors. MassCatalyst founders Bobby Katoli and Jonathan Startz believe that the federal equivalent (i.e., Title III of the JOBS Act) isn’t far behind.

How is MassCatalyst different from other crowdfunding platforms? Donation-based platforms like Kickstarter have paved the way for more advanced models of investment crowdfunding. Unlike other equity and debt platforms, however, MassCatalyst uses a unique auction system—the first known of its kind in the United States. The auction model allows investors to bid on the price per share for equity or the interest rate on debt auctions. The end result is a dynamic and genuine free marketplace for investments in private companies.

Two companies, Glass-Media and Curious Marketplaces, will launch crowdfunding campaigns with MassCatalyst in January 2015. Glass-Media is a marketing company, specializing in interactive projection-based storefront displays, while Curious Marketplaces facilitates community-based, online marketplaces. MassCatalyst has several other companies within the registration phase that it will be presenting to investors early next year.

Starting Dec. 15, investors and businesses can register and begin exploring the platform. MassCatalyst has also launched the The Crowdfunding Channel on YouTube with the goal of helping to educate the public on the industry and fundamental principles of investing.

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Equity Crowdfunding Service Providers (CSPs) Needed to Support the Growing Number of Texas Crowdfunding Portals (TCPs) and Texas Crowdfunding Issuers (TCIs)

4 Dec

Join the Texas Crowdfunding Network of securities attorneys, certified financial advisors, securities sales professionals, investment advisors, escrow agents, certified public accounts for Texas issuers

 By Robert Hoskins

Dallas, Texas – Front Page PR announced that the firm is seeking Equity Crowdfunding Service Providers to partner with in order to serve the growing number of Texas Equity Crowdfunding Portals and their Private Placement Memorandum (PPM) Issuers.

The firm is seeking to build an in-depth Texas Crowdfunding Network of securities lawyers, certified financial advisors, brokers, registered representatives, securities sales professionals, investment advisors, banking escrow agents and many other types of ancillary crowdfunding service providers that are authorized to operate within the guidelines of the Texas Intrastate Crowdfunding Exemption Rules.  Click here to join

Texas Crowdfunding Portals, Issuers and Service Providers

Texas Crowdfunding Portals, Issuers and Service Providers

“Per the Texas Intrastate Crowdfunding Exemption Rules, the top equity crowdfunding sites serving Texas are not allowed to provide any type of guidance or consulting services to their private placement issuers,” said Robert Hoskins, Front Page PR’s Director of Crowdfunding. “These service providers will be needed to help is setup corporate structures, write PPMs, select the most appropriate offering structures, establish accurate offering valuations, set up escrow accounts at Texas banks and ensure that offerings meet strict Texas and SEC securities laws.”

The goal of the Texas Crowdfunding Network is to build the beginning foundation for the brand new Texas crowdfunding industry. As with any new industry aligning the fragmented players and putting them into streamlined business directory where all the players can find each other is critical. This will allow TCI’s to find third-party CSPs that will help them put together their PPMs prior to registering their offering with a leading TCP.

The majority of TCPs are still in the process of filling out their Texas State Securities Board Registration forms. Once filed it will still take several weeks to be approved by the state. In the mean time portals are actively recruiting both accredited and unaccredited investors as well as PPM issuers.

Due to the fact that PPM issuers will need help putting together their financial paperwork and the legal rules that prevent portals for giving any guidance, there is a real need for a database of marketing, legal, securities, investment, investor relations, financial planners, document preparation and banking escrow professionals that issuers can turn to get their paperwork in order.

Financial Industry Regulatory Authority (FINRA)

To give newcomers some insight into the securities and investment industry, here are some FINRA definitions of the various players and their typical roles in the fundraising and investment process:

Brokers:

  • What they are:  While many people use the word broker generically to describe someone who handles stock transactions, the legal definition is somewhat different—and worth knowing. A broker-dealer is a person or company that is in the business of buying and selling securities—stocks, bonds, mutual funds, and certain other investment products—on behalf of its customers (as broker), for its own account (as dealer), or both. Individuals who work for broker-dealers—the sales personnel whom most people call brokers – are technically known as registered representatives.
  • What they offer:  Broker-dealers vary widely in the types of services they offer, falling generally into two categories—full-service and discount brokerage firms. Full-service firms typically charge more for each transaction, but they tend to have large research operations that representatives can tap into when making recommendations, can handle nearly any kind of financial transaction you want to make, and may offer investment planning or other services.Discount broker-dealer firms are usually cheaper, but you may have to research potential investments on your own—though the broker-dealer Web sites may have a lot of information you can use.Registered representatives are primarily securities salespeople and may also go by such generic titles as financial consultant, financial adviser, or investment consultant. The products they can sell you depend on the licenses they hold.For example, a representative who has passed the Series 6 exam can sell only mutual funds, variable annuities, and similar products, while the holder of a Series 7 license can sell a broader array of securities. When a registered representative suggests that you buy or sell a particular security, he or she must have reason to believe that the recommendation is suitable for you based on a host of factors, including your income, portfolio, and overall financial situation, your tolerance for risk, and your stated investment objectives.

Investment Advisers:

  • What they are:  An investment adviser is an individual or company who is paid for providing advice about securities to their clients. Although the terms sound similar, investment advisers are not the same as financial advisers and should not be confused. The term financial adviser is a generic term that usually refers to a broker (or, to use the technical term, a registered representative).By contrast, the term investment adviser is a legal term that refers to an individual or company that is registered as such with either the Securities and Exchange Commission or a state securities regulator. Common names for investment advisers include asset managers, investment counselors, investment managers, portfolio managers, and wealth managers. Investment adviser representatives are individuals who work for and give advice on behalf of registered investment advisers.
  • What they offer:  In addition to providing individually tailored investment advice, some investment advisers manage investment portfolios. Others may offer financial planning services or, if they are properly licensed, brokerage services (such as buying or selling stock or bonds)—or some combination of all these services.

Accountants:

  • What they are:  Accountants are trained to provide professional assistance to individuals and companies in areas including tax and financial planning, tax reporting, auditing, and management consulting.
  • What they offer:  A CPA can help you consider the tax implications of financial decisions you make and assist with other tax-related issues, such as preparing annual tax returns. Some CPAs are also certified by the AICPA as Personal Financial Specialists (PFSs), which means they have met AICPA’s education requirements for providing financial planning services, including assessing your overall financial situation, developing a budget, setting goals for saving and investing, and developing a plan for monitoring your progress and reaching your goals.

Lawyers:

  • What they are:  A lawyer is licensed to give legal advice to clients. Lawyers are trained to tell you about the legal impact one financial planning or investment decision might have on another—such as the tax implications of setting up a certain type of trust for your estate.
  • What they offer:  As with other professionals, the range of services lawyers can provide will vary greatly from individual to individual. For example, if one of your financial goals is leaving your assets to particular people or organizations, you will want to work with a lawyer who specializes in estate planning.

Financial Planners:

  • What they are:  Financial planners can come from a variety of backgrounds and offer a variety of services. They could be brokers or investment advisers, insurance agents or practicing accountants—or they have no financial credentials at all. Some will examine your entire financial picture and help you develop a detailed plan for achieving your financial goals. Others, however, will recommend only the products they sell, which may give you a limited range of choices.
  • What they offer:  The breadth and depth of services a financial planner offers will vary from provider to provider. Some create comprehensive plans that delve into every aspect of your financial life, including savings, investments, insurance, college savings, retirement, taxes and estate planning. Others have a more limited focus, such as insurance or securities. Some only prepare plans, while others also sell investments, insurance, or other products. If they sell products, their recommendations typically will correspond with the products or services they sell.For example, an insurance agent will tell you about insurance products (such as life insurance and annuities) but likely won’t discuss other investment choices (such as stocks, bonds or mutual funds). You’ll want to make certain you fully understand which areas of your financial life a particular planner can—and cannot—help with before you hire that person.

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Contact:
Robert Hoskins

Front Page PR
(512) 627-6622
@Crowdfunding_PR
@FrontPage_PR

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