Small businesses take advantage of Minnesota's investment crowdfunding
(KMSP) - After becoming state law in 2016, MN Vest is set to take full effect this year.
The state law allows Minnesota businesses to solicit and accept investments from small time investors.
“You can’t overlook the advantage of having 20 brand ambassadors in your community,” said business owner Doug Sams.
Sams’ is among the first Minnesota small business owners to take part so called “investment crowdfunding.” His Minnetonka restaurant “Farm + Vine” is hoping to raise 20-percent of their start up revenue through the program.
“This is really kind of a break through thing, the democratization of capital as we like to call it,” said David Duccini, CEO of “Silicon Prairie,” one of three state approved portals that host the businesses campaigns.
So far, seven businesses have registered through the state and are taking part.
“I’m all for investing in the 3M’s and the Targets of the world, but this is much closer to home. You can literally walk down the street into a company you own a part of, you can talk to the owner,” said Zach Robins, one of the authors of the legislation.
For more on the program, state oversight and requirements click here.