When Austin startup Grandma Lu’s Spice Cabinet wanted to raise cash to expand its snack line of crunchy dried peas this summer, company founder Anish Sheth couldn’t advertise or try other marketing techniques to look for investors. Federal securities rules wouldn’t allow it.
But starting Monday, that all changes. Grandma Lu’s and other companies will be able to expand their search for investors to a much wider field, as regulators end a decades-old ban that made it illegal for companies to publicly advertise as they seek investors.
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Local business coverage
Lori Hawkins has reported on startups, entrepreneurs and venture capital investing in Central Texas since the mid-1990s. Dan Zehr focuses on the region’s overall economic health and how that’s affected by specific trends and industries.
CORRECTION: An earlier version of this story gave an incorrect title for Texas State Securities Commissioner John Morgan. The earlier version also should have made clear that Morgan’s comments were specifically about the new public advertising rules that went into effect Monday.