Texas Code § 228.152

INVESTMENT IN EARLY STAGE BUSINESS REQUIRED
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Sec. 228.152. INVESTMENT IN EARLY STAGE BUSINESS REQUIRED. (a) In this section, "early stage business" means a qualified business that:
(1) is involved, at the time of a certified capital company's first investment, in activities related to the development of initial product or service offerings, such as prototype development or establishment of initial production or service processes;
(2) was initially organized less than two years before the date of the certified capital company's first investment; or
(3) during the fiscal year immediately preceding the year of the certified capital company's first investment had, on a consolidated basis with the business's affiliates, gross revenues of not more than $2 million as determined in accordance with generally accepted accounting principles.
(b) A certified capital company must place at least 50 percent of the amount of qualified investments required by Section 228.151 (b) in early stage businesses.

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