2015 is an hot year for digital investing in the US. In addition to the adoption of Title IV of the JOBS Act by the SEC, which in theory should be entering into effect soon, ten states approved intrastate crowdfunding regulations. To these, this week, we can add the 11th US State giving green light to online investing: Minnesota.
- Issuers have to be incorporated in Minnesota and cannot raise more than $ 2 million without presenting audited financial statements. The limit is lifted up to $ 5 million if such documents are available in any given 12 month period.
- Retail investors can invest up to $10,000 per offering. This cap does not exist in the case of accredited investors.
No specific rules for the portals are highlighted and before we can see any online investing activities in Minnesota because the State’s Commerce Department has to write the regulations first. Minnesota digital investing bill resembles under many aspects - for example the caps on investments - those approved in other States, which Crowd Valley covered in previous articles in this post. It is question whether all these similarities among different States’ online investing bills will produce any kind of influence on the Federal legal framework that should be adopted by the SEC with Title III.
Belz, A. (2015).Dayton Signs Bill to allow Equity Crowdfunding. Star Tribune
Alois, JD. Investment Crowdfunding is Now Legal in Minnesota. Crowdfundinsider
About the author - Irene Tordera
Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives.
During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem.