MNvest’s movement to improve securities regulations around intrastate crowdfunding in Minnesota continues.
The preliminary legislation has acquired four early endorsements: Senators Terri Bonoff (D) & Branden Petersen (R); Representatives Joe Atkins (D) & Jennifer Loon (R).
The most recent bill version (now officially called MNvest) reflects many of the conclusions reached after a first of its kind open source ‘forkathon’ event on November 11, where a meetup gathered to discuss and debate around nuances of the legalese.
“The proposed legislation is designed with consumer protection in mind. The cap protects non-accredited investors from potentially losing their hard-earned savings should a business they invested in ultimately fail to achieve its business goals. The number is generally consistent with what’s been done in other states (see attached). We are considering alternative structures (e.g. using an individualized cap tied to a percentage of each person’s gross income; creating a third class of investors based on income or sophistication and subject to a higher cap, etc.), but have thus far decided to keep it simple and easy to understand.”
Easy to understand, quick to implement and cost effective in nature — are the three core elements to watch as MNvest evolves going into the legislative season. Those interested in what’s next, and the impact MNvest could have the future of Minnesota’s tech industry, can join a Club E luncheon panel on Wednesday in Minneapolis.