MNstarter has become the third portal opertor approved by the state of Minnesota to host intrastate equity crowdfunding campaigns online.
What makes MNstarter different?
“We will be free for the issuing entrepreneur to host and execute their campaign,” says Joel Stewart, one of the site’s four cofounders and its chief architect.
“We’re also going to be more resourceful than just a portal, with unique outreach and educational events surrounding this new equity crowdfunding movement. We want to be a one stop shop.”
Naturally, there will still be fees for issuing entrepreneurs incurred via equity crowdfunding — registration, escrowand legal for example — but if MNstarter is free of charge, they’re already proposing a cheaper alternative for entrepreneurs to consider; issuers can also be their own portal, it’s not mandated to use a 3rd party.
“We will make our money in other ways, such as advertising or referrals,” Stewart proclaims. While the portal originally planned to be a 501c3 non-profit company, they ended up as a for profit public benefit corporation.
Intrastate equity crowdfunding, aka MNVest, became legal in Minnesota last summer for entrepreneurs to advertise qualified securities and fundraise up to $10k per non-accredited investor.
There has been only equity crowdfunding campaign launched under Minnesota’s new crowdfunding law so far, and that is a coop brewery raising $200k. The dynamics for a technology startup to are completely different, as you can imagine.
With input from the broader community, TECHdotMN is currently drafting a set of legal documents tailored for the local tech industry to reduce the cost and complexity of raising seed capital under MNvest.