Minnesota Equity Crowdfunding Legislation Introduced
MNvest, the equity crowdfuding bill drafted by Winthrop & Weinstine attorneys Ryan Schildkraut and Zachary Robins, has passed its first House committee hearing. Schildkraut and Robins work with emerging companies in corporate and securities law, and have seen their clients struggle to raise capital for startups; MNvest was sparked by the needs of these clients.
The program is designed to allow small businesses and entrepreneurs to raise money by selling equity, or security interests, to Minnesota residents via state-registered internet portals. Unlike Kickstarter, the popular crowdfunding website where supporters receive a product or token from the company, investors using MNvest would own a piece of the company.
Fifteen states, including Wisconsin, Michigan, and Indiana, have enacted laws similar to MNvest, and seventeen other states are in various stages of enacting similar legislation.
MNvest has taken prominence in the news because of its important implications for small business owners; to read about MNvest in a few of these outlets, please visit the linked articles below.