UPDATE #3 - June 15, 2015 – Winthrop &
Weinstine, P.A., is pleased to announce that MNvest has officially been signed
into law in the state of Minnesota. The new law, drafted by Winthrop &
Weinstine attorneys Ryan Schildkraut and Zachary Robins, and sponsored by Sen. Terri
Bonoff (D) and Rep. Jen Loon (R), will enable Minnesota businesses to legally promote
investment opportunities online to all Minnesota residents.
As of April 23, 2015, MNvest has formally passed both chambers of
Congress, and is expected to be signed into law by Governor Dayton. This major
step brings Minnesota small and growing businesses even closer to using
crowdfunding to raise capital, and propels the entire state of Minnesota
forward with the possibility of increased economic growth.
- As of March 23, 2015, MNvest has passed through Senate Judiciary and House Government Operations Committees. The bill was amended to address concerns raised by the Commerce Department and Commissioner Mike Rothman. Next, the bill will need to pass House Jobs and Senate Finance – Environment, Economic Development and Agriculture Budget Division Committees.
March 3, 2015 - MNvest, the equity crowdfunding 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
Fondler, David. "State enacts MNvest, to connect small business with small investors." St. Paul Pioneer Press. 20 June 2015.
Grayons, Katharine. "Mnvest Gives Startups New Path to Funding." Minneapolis/St. Paul Business Journal. 19 June 2015.
Weinmann, Karlee. "Rulemaking duration clouds future of MNvest." Finance & Commerce. 17 June 2015.
Belz, Adam. "Dayton signs bill to allow equity crowdfunding." StarTribune. 16 June 2015.
Alois, JD. "Investment Crowdfunding is Now Legal in Minnesota." Crowdfund Insider. 16 June 2015.
Weinmann, Karlee. "Supports worry lengthy rulemaking could hurt MNvest." Finance & Commerce. 28 April 2015.
Eggert, Andre. "MNvest: Kickstarter, But For Equity" Twin Cities Business. 21 April 2015.
Weinmann, Karlee. "Would MNvest crowdfunding draw investors?" Finance and Commerce. 9 April 2015.
Opinion. Minnesota: Lowering barriers to raising money. Pioneer Press. 9 April 2015.
Poole, Nora. "State legislature examines equity crowdfunding." Minnesota Business Magazine. 25 March 2015.
Belz, Adam. "New way to raise capital takes a step forward in Minnesota." StarTribune. 24 March 2015.
Sourced. "MNvest Survives the Minnesota Department of Commerce." TECHdotMN. 23 March, 2015.
Associated Press. "Lawmakers pitch crowdfunding service to connect investors with entrepreneurs." StarTribune. 3 March 2015.
Bonoff, et al. Op-ed: "Crowdfunding for Minnesota businesses? Our laws much catch up." StarTribune. 3 March 2015.
Omastiak, Rebecca. "Bill proposed to Launch Minn. Investor Program Similar to Kickstarter." KSTP. 3 March 2015.