Minnesota businesses seeking to raise capital can now use crowdfunding to obtain it.
 
MNvest, legislation that legalized the ability for entrepreneurs to raise money through online portals (not unlike Kickstarter) from unaccredited investors, has now completed rulemaking and officially gone into effect.
 
Previously, entrepreneurs could only seeks funds from family and friends or accredited (high net worth) investors. Under the new rules, any Minnesotan can give $10,000 to a company in exchange for equity. Accredited investors can go even further – they can give any amount up to an overall $2 million cap.
 
“[MNvest] is a fantastic new opportunity for investors and companies,” said Zach Robins, attorney at Winthrop & Weinstine and cofounder of the organization that helped shepherd through law. “It’s the democratization of funding.”
 
TCB’s previous coverage of MNvest can be viewed here.
 
Additional information is available at tech.mn.