Lawmakers Want Crowdfunding Service For Entrepreneurs
ST. PAUL, Minn. (AP) -- Minnesota legislators want to set up an online service to link young businesses with capital.
MNvest would work like the crowdfunding website Kickstarter. But instead of getting a CD or T-shirt for donating to a project, investors would own a piece of the company they support.
Minneapolis business attorney Ryan Schildkraut says many of the entrepreneurs he works with struggle to find funding for their ideas. Under current law, they can only solicit money from friends, family and the wealthiest investors.
Proponents say more than a dozen other states already allow programs like MNvest. They say it would make it easier for ordinary Minnesotans to invest.
A bill to establish MNvest passed its first Minnesota House committee on Tuesday. A Senate committee is scheduled to take it up Wednesday.
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