The Minnesota version of crowdfunding has arrived and is known as MNVest.
Unaccredited investors can invest up to $10,000 in any offering. For accredited investors, there is no limit to the amount you can invest. Accredited investors have net worth of $1 million or more or yearly income in the last 2 years of at least $200,00 if single or $300,000 jointly if married.
A MNvest issuer can raise $2 million during any 12 month period with CPA audited or reviewed financials or $1 million with unaudited financials.
In order to qualify, the MNvest issuer has to:
-
- be formed under Minnesota law as something other than a general partnership,
- have its principal office in Minnesota,
- have 80% or more of its assets in Minnesota;
- unless company had gross revenue under $5,000, at least 80% of gross revenues from the operation of a business in Minnesota.
-
-
- Additionally, the issuer cannot attempt to limit liability for fraud or intentional misrepresentation in connection with the offering and is not engaged in the business of trading in securities.
-
The offer must be conducted exclusively through a MNvest portal, which is an Internet Web site that is operated by a portal operator registered by the Commerce Department. The offering must satisfy many requirements, including:
-
-
-
- limited to intrastate offerings (Minnesota residents);
- provide prospective purchasers access through the portal to a copy of the issuer’s financial information; and
- make the requisite state filings with a fee of $300.
-
-
General solicitation and advertising of the offering are allowed provided that it meets specific requirements and the appropriate disclosures are made available.