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Tag Archives: PPM

GoldStar Trust Unveils CrowdPay.com Texas Crowdfunding Escrow and Payment Service APIs for Texas Crowdfunding Portals (TCPs) to Meet Texas State Securities Board Filing Requirements

16 Feb

GoldStar Trust  made the announcement to a packed auditorium at the Round Rock Texas State University full of crowdfunding advocates seeking to raise up to $1 million per year for new startups

By Robert Hoskins

Amarillo, Texas – The new equity crowdfunding rules from the Texas State Securities Board (TSSB) allow online ecommerce sites, also known as Texas crowdfunding portals, to market private placement memorandums (PPMs) from entrepreneurs, startups and existing businesses seeking funds to expand their operations throughout Texas. Instead of raising large sums of cash from a few Angel Investors or Venture Capitalists, any Texas-based business can now raise money utilizing a Texas crowdfunding site to market and sell equity shares to more than 20 million non-accredited Texas investors who are Texas residents.

CrowdPay by GoldStar Trust Company is the only Texas Bank Equity Crowdfunding Escrow Account Service

CrowdPay.com by GoldStar Trust Company is the only Texas Bank Equity Crowdfunding Escrow Account Service

For the first time in 80 years, any Texan 18 years or older can now invest up to $5,000 in multiple companies per year. This means any Texas-based business can now raise up to $1 million per year from hundreds to millions of Texas hobby investors and/or micro venture capitalists as well as traditional accredited investors nationwide.

For example, high-technology companies selling leading-edge wearable gadgets, smart phone apps, video games, social media management, or smart cooking appliances that set a minimum price of $500 per share can sell up to 2,000 private equity shares for a small percentage of the company’s ownership to raise $1 million of startup venture capital.

Unlike well-known, rewards-based crowdfunding sites such as GoFundMe, IndieGoGo or Kickstarter, where Crowdfunders are raising money over long 30-, 45- or 60-day campaigns, equity crowdfunding sites will be able to raise large amounts of money in a matter of hours via email blasts directing investors to online investment profiles.

“When an equity crowdfunding PPM is posted, every investor signed up on the crowdfunding portal via CrowdPay’s automated Application Programming Interface (API) will be able to fund an investment account and invest in the offering,” said Josh Duckworth, GoldStar Trust’s Director of Marketing.  “Similar to the way shares are sold during an Initial Public Offering (IPO), CrowdPay will allow investors to buy online with an electronic transfer or self-directed IRA. This requires a massive amount of processing power, stringent security and the ability to fulfill hundreds, even thousands of financial transactions automatically, which is why we branded it CrowdPay.”

Shifting the power from exclusive groups of Angel Investors and Venture Capitalists that refuse about 95% of the deals they are pitched, equity crowdfunding sites allow Issuers to market their PPMs directly to a potential audience of 20 million investors who can search equity crowdfunding sites or set automated email alerts by subject matter, product category or vertical business segment. Investors, however, must be registered with one or more of the top Texas crowdfunding sites in order to participate and to receive the confidential financial details and disclosure information associated with each PPM deal.

Any Texas-based business can open an equity crowdfunding portal by filing a Texas Crowdfunding Portal application form with the TSSB. Colleges, universities, incubators, accelerators, SBDC, chambers of commerce, magazines, industry trade associations, franchises, solar energy farms, co-operatives or any other large business organization with thousands of members who want to invest in startups and businesses as a crowd to create economic development and stimulate jobs is/are a good candidate to open an online Texas crowdfunding portal.

To setup a crowdfunding portal in Houston, the Woodlands, Sugarland, Dallas, Plano, Richardson, Irving, Fort Worth, Arlington, Hurst, Euless, Bedford, San Antonio, San Marcos, Austin, Round Rock, McAllen, Edinburg, Mission, El Paso, Killeen, Temple, Corpus Christi, Brownsville, Harlingen, Beaumont, Port Arthur, Lubbock, Laredo, Amarillo, Waco, College Station, Bryan, Longview, Tyler, Abilene, Wichita Falls, Midland, Odessa, Sherman, Dennison, San Angelo, Victoria, Texarkana and any other city in Texas, please call CrowdPay at (800) 486-6888.

CrowdPay supports equity crowdfunding portals for accredited investors nationwide and Texas intrastate crowdfunding portals that will open up crowdfunding to unaccredited investors. The system works behind the scenes via an API to open and fund investor accounts as part of the required escrow process; dividend and interest payments will also be paid to these investor accounts when applicable. CrowdPay.com is a site for portals and developers that details the specific crowdfunding process and provides in-depth API documentation. Please click here to check out CrowdPay’s API.

GoldStar Trust is one of the nation’s leading Self-Directed IRA custodians with over twenty years of experience and is the first bank in Texas to provide a working escrow solution approved by the Texas State Security Board for crowdfunding. GoldStar offers unique retirement solutions that allow investors to diversify their IRA portfolio with precious metals and other alternative investments such as equity crowdfunding. GoldStar serves as a paying agent and trustee for issuers of church bonds and municipal bonds in 38 states and serves as a custodian for more than 37,000 IRA accounts with total assets of more than $1.9 billion (as of March 31, 2014). Click here to setup a GoldStar Trust crowdfunding account.

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Contact:
Robert Hoskins
Front Page PR
(512) 627-6622
@Crowdfunding_PR
@FrontPage_PR

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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

Texas Crowdfunding Issuer (TCI) Rules for Private Placement Memorandum (PPM) Offerings

11 Nov

Texas Crowdfunding Issuer Rules

Texas Approves Equity Crowdfunding Exemption for Non-Accredited Investors

Here are the Texas Crowdfunding Issuer Rules that detail what it takes to issue a Private Placement Memorandum (PPM) for Equity Crowdfunding Offers in the state of Texas:

(b) Issuer.

(1) The issuer is a Texas entity that has filed a certificate of formation with the Texas Secretary of State and is authorized to do business in Texas and:

(A) At least 80% of the issuer’s gross revenues during its most recent fiscal year prior to the offering are derived from the operation of a business in Texas;

(B) At least 80% of the issuer’s assets at the end of its most recent semiannual period prior to the offering are located in Texas;

(C) The issuer will use at least 80% of the net proceeds of this offering in connection with the operation of its business within Texas; and

(D) The principal office of the issuer is located in Texas.

(2) The issuer is not, either before or because of the offering:

(A) A company that engaged or proposes to engage in the business of investing, reinvesting, owning, holding, or trading in securities;

(B) Subject to the reporting requirements of the Securities and Exchange Act of 1934, Section 13or Section 15(d), 15 U.S.C. §78m and §78o(d); or

(C) a company that has not yet defined its business operations, has no business plan, has no stated investment goal for the funds being raised, or that plans to engage in a merger or acquisition with an unspecified business entity.

Click here to see the Texas Crowdfunding Issuer (TCI) Disclosure Requirements.

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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