Equity Crowdfunding

This session, a bipartisan group of legislators introduced legislation to create an equity crowdfunding opportunity, known as MNvest. MNvest is a securities exemption for intrastate crowdfunding in Minnesota that would allow Minnesota companies to raise money from Minnesota residents in exchange for part ownership of the company. The goal of MNvest is to make it easier for Minnesotans to find and financially support businesses. Businesses would offer incentives to invest in their company, and Minnesotans would be able to find businesses and offers that suit their interests.

Supporters argue that legalizing equity crowdfunding has the effect of democratizing investments by enabling average Minnesotans to have the same opportunity to invest as wealthy individuals. This will also enable small businesses to receive necessary investments to grow their businesses.

Opponents argue that unsophisticated investors could be victims of fraud with crowdfunding. In addition, some opponents voice concerns that the high investment cap of $10,000 could lead some vulnerable investors to lose a lot of money that they cannot afford to lose.

STATUS: The bill is in the Finance Committee. (S.F. 138)

NEXT IN COMMERCE: Savings Plan Raffles


Senate DFL Media