Connect with us

Business News

Which state leads crowdfunding efforts? Texas, duh

Texas crowdfunding efforts have generated $1.8 million in investments over the course of about a year and a half.

Published

on

Leading the pack

Back in February of this year, John Morgan, the Texas State Securities Board Commissioner, predicted that Texas would become a national leader in US crowd-funding investment. New crowd-funding regulations, explained Morgan, would allow Texas-based companies to generate up to $1 million per year.

bar
We’re also warned to be “careful what we wish for”, but in this case it’s a good thing: Fast-forward to May 2016 and a recent article in the online journal Austininno seems to bear out that “Texas crowd funding efforts have generated $1.8 million in investments over the course of about a year and a half, and all that activity makes the state a national leader for this new type of funding businesses and projects.”

Commented Morgan, “We believe equity crowd-funding will catalyze new and wider prosperity, entrepreneurship and job growth in Texas.”

Do the math: With a population of more than 26 million, Texas is a massive market for companies wishing to raise capital through crowd-funding, [which serves] as a great gateway for all Texans to participate in funding growth in their communities and the state at large.

Playing by the rules

The key to Texas’ success is that intrastate crowd-funding allows non-accredited investors to invest up to $5,000 a year into one or more businesses and potentially get equity-based returns or interest from their investments. Businesses can generate up to $1 million from the crowd.

So far, 35 such offerings have been made in Texas, including six from Austin. In Austin, those include a group living development for tech workers, a kava bar, three tech startups working with Diversity Fund, and a restaurant.

Slow but sure

Despite all the activity, questions remain about how successful the efforts will be for both the businesses and their investors: Only 14 of the 35 fundraising efforts have reached their minimum investment marks. Only about 16 percent (roughly $1.8 million) of the $10.8 million that Texas businesses hope to collectively raise has been secured.

The website Altfi explains that Equity crowdfunding legislation in the US has been slow to develop. The industry as a whole is waiting for Title III of the JOBS Act, which will open up the industry to non-accredited investors.

When this act is passed it should release a huge amount of capital to small and medium sized businesses and provide a boost to the US economy.

A successful model

The most financially successful crowd-funding effort in Texas, so far, is the Chapman & Kirby gastrolounge that is planned as an event space and restaurant in downtown Houston. It has raised $440,800 from 134 investors. It seems to be a growth model that has worked: The offering is open to accredited investors, too, which means it may have generated investments of more than $5,000 from wealthier individuals.

#YeehawFunding

Nearly three decades living and working all over the world as a radio and television broadcast journalist in the United States Air Force, Staff Writer, Gary Picariello is now retired from the military and is focused on his writing career.

Continue Reading
Advertisement
3 Comments

3 Comments

  1. L.W. Dusty Brogdon

    May 31, 2016 at 2:09 pm

    See details here
    https://www.texasintrastatecrowdfunding.com/Texas-Results.html

    The truth is Texas Intrastate System is FAR behind where it should (Could) be!
    Of the 10 registered Texas Crowdfunding Portals (TCPs) with approved applications with our Texas State Securities Board (TSSB) , one has failed to fund ANY of the portals 7 Offers (Trucrowd(
    … One, Crudefunders has $1,050,000.00 of the $1.8 M total.
    Note;
    Equityeats has no offers and has never … CROWDBOARDERS has one offer and is in violation of The Texas Escrow Agent Rule …
    EquityBrick is new , Texas Crowdfunding has Zero offers and Zero funded.
    Business Funding is a No Show …

    DIYVERSIFY, LLC, New not active currently.

    BUSINESS FUNDING LLC
    2100 WYCHWOOD DRIVE
    AUSTIN TX 78746

    CROWDBOARDERS LLC
    4100 MIDWAY ROAD SUITE 2120
    CARROLLTON TX 75007

    CRUDEFUNDERS PORTAL TEXAS, LLC
    4550 POST OAK PLACE DRIVE SUITE 119
    HOUSTON TX 77027

    DIVERSITY FUND, LLC
    1108 LAVACA STREET # 110-309
    AUSTIN TX 78701

    DIYVERSIFY, LLC
    1127 ELDRIDGE PARKWAY SUITE 300 – 339
    HOUSTON TX 77077

    EQUITY BRICK LLC
    7703 NORTH LAMAR BLVD SUITE 510G
    AUSTIN TX 78752

    HIVE EQUITY INC. dba MASSVENTURE
    110 E. HOUSTON STREET 7TH FLOOR
    SAN ANTONIO TX 78205

    NEXTSEED TX LLC
    4101 GREENBRIAR DRIVE SUITE 122K
    HOUSTON TX 77098

    TEXAS CROWDFUNDING LLC
    20214 LAKE SHERWOOD DRIVE
    KATY TX 77450

    TRUCROWD TEXAS, INC
    10333 HARWIN DRIVE SUITE 460G
    HOUSTON TX 77036

  2. Pingback: Austin vs. Silicon Valley: Why is only one of the two terrified of the tech downturn? - The American Genius

  3. Pingback: Crowdfunding's first report card - good enough for the fridge? - The American Genius

Leave a Reply

Your email address will not be published. Required fields are marked *

Business News

Ending a dismal year, Samsung says goodbye to CEO

(BUSINESS NEWS) Following a tumultuous year, Samsung now must face their CEO, Kwon Oh-hyun, stepping down.

Published

on

kwon

Among exploding phones, recalled washing machines and an indicted former chairman, Samsung has had a rough year. Just as they start to get back on track, they have one more crisis to deal with.

Kwon Oh-hyun, Samsung CEO, has officially announced his departure.

In a letter to the employees, Kwon announced his plans to leave the company by March of next year. His words touch on all of the typical sentiments, like that he “had been thinking long and hard about (leaving) for quite some time,” and that he wants to “move on to the next chapter in his life.”

What Kwon doesn’t make clear are his exact reasons for leaving.

He mentions that Samsung is in an “unprecedented crisis inside and out,” without sharing any specifics. Via his own words, Samsung needs to reshape their company to keep up with the ever-changing IT industry.

Kwon believes that young, fresh leadership could be the answer that Samsung needs.

Though Kwon’s departure may seem like another hit for the company, it could be a new chapter for Samsung as well.

And it is a change they desperately need. Recently, Samsung has made the headlines with scandal after scandal.

Earlier this year, Jay Y. Lee, former Vice chairman, was found guilty on multiple charges of bribery. The charge, which Lee is now serving five years in prison for, also resulted in the impeachment of South Korean President Park Geun-hye.

Samsung also lived through two major recalls this year. They officially took the Galaxy Note 7 off of the market after various accusations of batteries overheating led to fires.

Samsung also recalled 2.8 million washing machines because their “violent vibrations” caused some users to be injured.

Major scandals like these are enough for any company to flop. However, Samsung is still in the game. Kwon’s letter calls for the company to start anew, which is exactly what they need to do to stay afloat.

Of course, creating devices that do not cause injuries and fires will be a start. In addition, new leadership will keep the company relevant and hopefully, revive their reputation.

Continue Reading

Business News

Identity-protecting roller stamps are a must for any office

(BUSINESS NEWS) Your identity is one of the most valuable things, that’s why Guard Your ID has created a stamp for when shredders won’t work.

Published

on

ID stamp

The massive Equifax hack made nearly everyone feel vulnerable, but the truth is that every day we knowingly engage in activity that puts our privacy at risk.

Just think of how many times you give up your telephone number when signing up for a new magazine subscription. Or the numerous times you thoughtlessly threw away mail containing confidential information.

There are so many opportunities to accidentally reveal private information but luckily, there are an equal number of ways to prevent it. Though you may think that identity theft could never happen to you, it’s better to be safe than sorry.

Of the various tools invented to help you protect your identity, one of the newest is actually very simple. The company Guard Your ID has recently introduced privacy protection rollers and stamps. These gadgets are simple, quick and effective to help shield your identity on virtually anything.

The oil-based ink works on both glossy and non-glossy surfaces without smearing or rubbing off. These stamps work by creating an encrypted pattern which makes text unreadable.

Though shredding is another effective way to protect your identity, the rollers and stamps are more environmentally friendly. At some centers, shredded paper cannot be accepted as recyclable material. In addition, you can stamp more things that you can shred.

For example, you may want to cover up a label on a prescription bottle. The protection stamps are more versatile than shredding, and also more cost effective.

An Identity Protection Stamp can be purchased for under $20 and has a shelf life of 2-3 years. A wide format roller is also available for larger surfaces. In addition, refillable ink can be bought for the wide rollers.

It may seem like a nuisance to start stamping every label, bank statement and mail that contains any piece of private information on it, but in the end, it may be worth it. Just think of how much time you will spend freezing your accounts and recovering your identity if it is stolen.

It may seem silly, but today even a simple stamp goes a long way in protecting your identity.

Continue Reading

Business News

Zuckerberg used VR to highlight hurricane Maria destruction

(BUSINESS NEWS) Mark Zuckerberg tapped into his Occulus VR conference abilities to highlight the damage Hurricane Maria did to Puerto Rico.

Published

on

hurricane

We know at this point that Puerto Rico was devastated by Hurricane Maria, but it can be difficult to understand the true extent of the damage without being there. We’ve seen some images and some video but Mark Zuckerberg is taking it to another level.

In a new partnership with the Red Cross, Zuck is taking to virtual reality to assist relief efforts.

In a presentation from Facebook’s Silicon Valley headquarters, Zuckerberg took Facebook users on a 360-degree tour of the hurricane destroyed island, using a combination of artificial intelligence and satellite imagery to determine areas with the most significant need.

Explaining his use of technology and its purpose, Zuckerberg said, “We use artificial intelligence to build what we call ‘population maps’ so you can look at satellite imagery of an area and get a sense of where it is that people actually live and the density of different places and where there’s infrastructure going to in those places. That’s going to help the Red Cross figure out where people are who need help.”

He also went through Facebook’s plans to restore internet connectivity on the island, which has been struggling to get power and resources back after the category 3 hurricane slammed the island with 125 mile per hour winds last month.

Zuckerberg said his company has already sent employees to the island to investigate damage and get networks working properly.

Speaking on the importance of internet and its integral role in the island’s ability to communicate domestically and abroad, he said, “When you are in the middle of a disaster like this, it’s really important that people have access to the internet. But it’s also important so that when relief workers go down there, they can coordinate with each other and know where people need help.”

There has been a bit of blowback from the VR tour though. A few of Zuck’s critics are calling him “tone deaf” saying that having the avatar chit-chat in front of flooded and destroyed home made it seem like he was cashing in on a natural disaster to plug his Occulus brand.

While his intentions were probably in the right spot, no matter how it came off, this is the first time that VR has been used for disaster coverage and we’re sure it won’t be the last.

Continue Reading
Advertisement

The
American Genius
News neatly in your inbox

Join thousands of AG fans and SUBSCRIBE to get business and tech news updates, breaking stories, and MORE!

Emerging Stories