New Minnesota Crowdfunding Law, MNvest, Goes into Effect Monday

New Minnesota Crowdfunding Law, MNvest, Goes into Effect Monday Photo: KSTP File Photo

August 08, 2017 05:47 PM

Minnesota small businesses will soon have a new way to seek investment funding thanks to the state’s MNvest law.

The law was passed last year by the Minnesota legislature and signed into law by Gov. Mark Dayton. The new rules for equity crowdfunding through the Internet go into effect June 20.

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Under the law, Minnesotans can buy securities offered by a Minnesota business with the potential to share in the company profits or get a financial return on their investment. The MNvest law applies only to Minnesota-based businesses soliciting funds from Minnesota residents.

Minnesota Department of Commerce Commissioner Mike Rothman says MNvest gives Minnesotans a new opportunity to invest in local startups and small businesses.

Here are some key provisions of MNvest, according to the Department of Commerce:

  • The investment must be offered only through an online MNvest internet “portal” run by a portal operator or broker-dealer registered with the Commerce Department.
  • A company may raise up to $2 million in a 12-month period if its financial statements have been audited or reviewed by a certified public accountant.
  • A company may raise up to $1 million in a 12-month period if its financial statements have not been audited or reviewed by a certified public accountant.
  • Individuals may invest up to $10,000 in connection with a single MNvest offering, except for “accredited” investors with high incomes or net worth, who have no limit.

Learn more about MNvest here.

Credits

Jennie Lissarrague

Copyright 2017 - KSTP-TV, LLC A Hubbard Broadcasting Company

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