Can I offer equity to investors without violating securities laws in Minnesota? What are the requirements?

To offer equity to investors in Minnesota, you may be able to rely on the MNvest Registration Exemption under Minnesota Statutes, section 80A.461. To qualify for this exemption, you must meet certain requirements, including:

• Being a MNvest issuer that has its principal place of business in Minnesota and is doing business within Minnesota.
• Conducting the offer and sale of securities exclusively through a MNvest portal.
• Meeting certain financial and disclosure requirements.
• Limiting the amount of capital raised in any 12-month period to $2,000,000 if audited financial statements are provided, or $1,000,000 if unaudited financial statements are provided.
• Complying with other requirements imposed by the administrator.

For more information on the MNvest Registration Exemption and its requirements, please refer to Minnesota Statutes, section 80A.461 ^[1.1]. Please note that this response is not legal advice and you should consult with a licensed attorney for guidance on your specific situation.

Source(s):

• [1.1] MNVEST REGISTRATION EXEMPTION.

Jurisdiction

Minnesota

• General