Minnesota Entrepreneurs Grow with Crowdfunding

Updated: 12/02/2013 11:09 PM KSTP.com By: Nick Winkler

The rules have been lifted in regard to how entrepreneurs can go about funding future growth.

What was once a secretive process with closed door meetings is now being opened up for all to see thanks to changes to the law and the growth in crowdfunding sites.

For instance, Truhealth MD, a St. Louis Park start up, has already crowdfunded $5,000 toward its $150,000 goal. The company makes a line of nutritional products that aim to fill nutritional gaps and reduce the dependency people have on medication to fight heart diseases and other other ailments.

The financial benefits are obvious but there are also some concerns companies and investors should be aware of before crowdfunding.

Attorneys warn anyone crowdfunding more than $250,000 will be required to comply with costly auditing and disclosure requirements. Additionally, investors will want to weigh the upside potential of a given investment against the degree to which crowdfunding might distract company founders from growing their businesses.

TiE Minnesota, which fosters entrepreneurship globally, is partnering with the Schulze School of Entrepreneurship at the University of St. Thomas to sponsor a panel discussion on the topic of crowdfunding.

Investors and entrepreneurs are invited to attend the event Tuesday at 6:30 p.m.