Yesterday AFI Co-Founder Curt Nelson and Investor Brian Rodgers testified to the Texas House of Representatives Investments & Financial Service Committee in favor of HB3425 "Relating to the creation of a intrastate investment market for purposes of trading securities issued under the intrastate crowdfunding exemption from federal securities laws" introduced by Committee Chair Tan Parker (R-Flower Mound).
The bill would create a secondary market for equity shares of companies that had issued stock via the Texas Crowdfunding Portals rules authorized last year. AFI friend Texas Entrepreneur Networks, for example, is an authorized Texas Crowdfunding Portal.
Both Nelson and Rodgers discussed the importance of liquid secondary markets for removing barriers to investment in small private companies by providing investors with the liquidity of an "exit" without the company have to be sold, or go public via IPO. Additionally, Nelson and Rodgers pointed out potential economic development benefits from a Texas secondary market.
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