Six Canadian jurisdictions (B.C., Saskatchewan, Manitoba, Quebec, New Brunswick or Nova Scotia) have adopted a law allowing online investing from non-accredited investors. The so called “Crowdfunding Prospectus Exemption” consists mainly of two elements: a prospectus exemption permitting an issuer to distribute securities without a prospectus, and a registration exemption exempting a funding portal from having to register as a dealer.
After Michigan, New Mexico and eleven other States, Texas joins the Intrastate Crowdfunding Movement, becoming the largest US state adopting a set of rules for equity crowdfunding (California’s law for intrastate crowdfunding got stuck in the State’s senate).
Last Wednesday, the Texas State Securities Board approved a law that allows adults resident in Texas to buy shares of private companies through crowdfunding portals. Like in all the other States which joined the Intrastate Crowdfunding Movement, also in Texas the law limits the possibility to use crowdfunding to raise equity capital only to companies incorporated in the State.
One year has passed since the SEC released Title II, which removed the ban on general solicitation and general advertising for private issuers. Since then the entire US crowdfunding sector has been waiting the famous Title III, which would eventually allow also non accredited investors to invest through equity crowdfunding portals. Nevertheless, even though Title III is still missing, the US market of equity crowdfunding has been flourishing with interesting numbers.