[Updated] The Equity Crowdfunding Poll Results Are In

by The TECHdotMN Team

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Will you participate in equity crowdfunding we asked? 309 unique votes = 143/46% – yes; 101/32% – maybe; 65/21% – no

Through 2016 and on into this year, Equity Crowdfunding in the US is garnering the attention of entrepreneurs and those who never considered themselves investors, until now.

Locally speaking, intrastate equity crowdfunding aka “MNvest” became legally recognized in Minnesota as of June 15, 2015 (80A.461). From there, it took a full year before the State department fleshed out regulations surrounding MNvest’s application and rollout in the real world.

Equity crowdfunding in Minnesota presents a new option for entrepreneurs and business owners to publicly advertise a capital raise (equity or debt) up $2m from their non-accredited resident peers, who can individually invest up to $10k per deal.

Now it’s here and there are three portals up and running: Venture Near, Silicon Prairie Online, and MNstarter.

There are also three offerings underway, all of which fall into the food and beverage sector, so no tech ventures have yet to introduce their fundraising pursuits via MNvest yet.

While we watch and wait for what’s next — tell us if you plan to participate in MNvest as a non-accredited investor!

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Comments

  • Zach Robins

    Re your last sentence (“tell us if you plan to participate in MNvest as a non-accredited investor!”), investment crowdfunding is just as ripe for accredited investors. To date there has not been steady deal flow for your average accredited investor outside of SV (save for AngelList). So, Reg CF and MNvest may provide opportunities just as exciting as accredited only deals. The dirty secret is that in my experience the majority of investors in a crowdfunded round are non-accredited (in the aggregate), but the majority of capital comes from accredited investors…

    • http://thebigidea.com/ LittleDuke

      “The dirty secret is that in my experience the majority of investors in a crowdfunded round are non-accredited (in the aggregate), but the majority of capital comes from accredited investors…”

      The 80/20 rule at work…

  • http://thebigidea.com/ LittleDuke

    Looks like the fourth issuer is another brewery:

    https://mn.gov/commerce/industries/securities/mnvest/issuers.jsp

    • Zach Robins

      Duke – in the absence of checking the state’s issuer page each week, any way to be automatically alerted when there’s a new Offering declared effective?

      • http://thebigidea.com/ LittleDuke

        Yes, if their CMS supports RSS feeds we could easily see that there was an update. Otherwise, I can write a screen-scraper daemon and do daily diffs and send an email when something changes

      • http://thebigidea.com/ LittleDuke

        So I have an hourly robot running now 8-6 M-F that checks the site for any changes and emails me — the last change was an updated phone number ;-)

  • http://thebigidea.com/ LittleDuke

    I know its a small sample so far at just 127 votes, but I think there’s a possible correlation to the 40 percentile number we’ve learned recently about the number of campaigns that successfully reach their minimum raise amount. ~ 1/3 are “maybe” and the remainder are skeptics. We need to focus on the “maybes” to reach a tipping point in the 2/3rds percentile since “haters are gonna hate” and no point in trying to convince them otherwise….

  • http://thebigidea.com/ LittleDuke

    Silicon Prairie Holdings Inc a newly formed company to own the Silicon Prairie Online MNvest portal (and related companies TBD) filed it’s offering with Commerce on Feb 8th. Once approved the https://sppx.io portal will be officially open for business!

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