MNvest will allow businesses
to legally promote investment opportunities online.
– 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.
businesses had been bound by stiffly regulated securities laws limiting who can
learn about a company’s fundraising efforts, essentially narrowing the field to
accredited investors only. The passing of MNvest provides for wider, cheaper,
and faster access to funding for companies and entrepreneurs.
Schildkraut and Robins drafted this legislation after
realizing their Minnesota clients were at a disadvantage by not having the
ability to use “crowdfunding” (i.e., the ability to pool capital from a large number
of people) to raise capital for their businesses. “MNvest will encourage free
enterprise, expand small businesses, create jobs and increase the tax base. The
new legislation allows anyone with a growing business to raise capital with
support from the community,” said Schildkraut. “Everyone wants their local
businesses and entrepreneurs to succeed. We’re excited that, through
crowdfunding, any Minnesotan can finally become an investor and have a direct stake
in the next generation of great Minnesota companies.”
“We’re proud of the
entrepreneurial spirit embodied in Ryan and Zach,” said Scott Dongoske, Firm
President at Winthrop & Weinstine. “They recognized a need and took the
initiative to modernize archaic laws from the 1930s and create legislation that
Minnesota needs today. It’s been fascinating to have been a part of MNvest’s
journey that started less than a year ago – and is now coming to fruition to benefit
businesses throughout Minnesota.”
Equity crowdfunding is ideal for early-stage companies
that aren’t yet big enough to draw interest from venture capitalists, or those
that are more locally oriented, such as breweries or restaurants. In addition,
MNvest could also provide farmers, real estate organizations and longtime
businesses access to funds to upgrade equipment or expand. Minnesota will join nearly
20 other states that already allow this type of crowdfunding, including
Wisconsin, Michigan and Indiana. Next, as a final hurdle, the Department of
Commerce will develop an oversight plan and lay out the rules governing MNvest.
For more information
about MNvest and Winthrop & Weinstine, please visit www.winthrop.com
Winthrop & Weinstine, P.A.
Winthrop & Weinstine is a dynamic and
growing law firm focused on building strong client relationships through
responsiveness, innovation and creativity.
The firm enjoys steady growth by meeting the diverse needs of its
clients from individuals and emerging-growth businesses to Fortune 500
companies in an impressive array of industries throughout the Twin Cities and