Skip to content

MN MeetUp Update

Hey Crowdfunders!

As was announced at the first meetup, was "first to the post" on getting approval from the MN DOC as a registered portal operator.  We learned from Ally Miettunen that expects to be next in December.

I just got word myself that our initial review for has been scheduled for Dec 7th and thanks in part to those before me, I have the list of questions and concerns in advance.  I'm optimistic that we'll be cleared for commerce in early January.  I have to chuckle a little, the reception I got was amusing: "Oh yeah, you're that blockchain guy!  Get ready for a LOT of questions!" :-)

I socialed out on our blog yesterday that our portal is now open for Partner registrations -- if you have a product or service you think would appeal to the crowdfunding demographic, I would welcome any early beta testers and feedback on our partner directory.

TECH.MN held a kickoff call on Monday to begin the conversation around "model docs" for MNvest issuers to use.  There is a strong desire to get the cost down to zero, but everyone agrees that "you get what you pay for!" -- Today the best option appears to be using iDisclose at a cost of 2,000.  The group agreed that having model documents linked to a form filing capability would be a powerful offering, something we're interested in doing.

It was reported out that nationally the trend is fully half of the deals being done are some form of debt instrument, and tends to be regional.  For example the portal operator in Florida focuses its investor message on "earning a good return" and their issuer message seems to be "get access to capital at a lower rate".   I know in my own quest for capital a decade ago, I ended up having to obtain an SBA loan for the 150K we wanted to begin doing M&A.  We know from our kick off meeting that many entrepreneurs are not in situations where they can take on securitized debt (the SBA puts a lien on your house!) - THIS is where we hope MNvest will bridge that gap.

There is one invisible pink elephant in the room that we need to deal with sooner than later:  CAP TABLES.   There is a huge amount of FUD (Fear, Uncertainty & Doubt) that is scaring off entrepreneurs from MNvest style raises.  The idea that a "serious" investor will not be interested in your venture if you have too many little investors.  I'm going to be among the first to call BS on this!  I myself had to deal with this issue ten years ago when I was actively trying to raise money for a VOIP company I was launching using a SCOR offering.  There are a lot of ways we can deal with this and we should develop a narrative.  More to come on this topic!

Happy Thanksgiving and safe travels!  Hope to see at the next meetup, December 13th.


David Duccini


No Trackbacks


Display comments as Linear | Threaded

No comments

The author does not allow comments to this entry

Add Comment

Enclosing asterisks marks text as bold (*word*), underscore are made via _word_.
Standard emoticons like :-) and ;-) are converted to images.
E-Mail addresses will not be displayed and will only be used for E-Mail notifications.

To prevent automated Bots from commentspamming, please enter the string you see in the image below in the appropriate input box. Your comment will only be submitted if the strings match. Please ensure that your browser supports and accepts cookies, or your comment cannot be verified correctly.

Form options