Good morning and Happy Monday!
Entrepreneurs may want to take advantage of some free guidance provided by the State of Michigan.
The State of Michigan’s Department of Licensing and Regulatory Affairs (LARA) announced today that it is hosting a workshop – “Understanding Your Options for Raising Capital in Michigan”. You can Register here The seminar will be held in Lansing and other locations all across Michigan.
According to the press release, the Seminar will discuss
- legal and structural basics;
- key formation and other often overlooked issues;
- private offerings using regulation D or intrastate exemptions (504/SCOR, 504/202(1)(n) and 201(g));
- Michigan intrastate crowdfunding;
- crafting a winning investor pitch; venture capital; long-term planning for a potential IPO;
- protecting yourself from arbitration, civil litigation and potential criminal liability.
Its good to hear that one of LARA’s topics will be crowdfunding under the MILE Act.
As I’ve previously written about, Michigan’s intrastate crowdfunding exemption could be a useful tool for entrepreneurs, but it hasn’t gained much traction. There are many “unknowns” that are detracting entrepreneurs from pursuing local crowdfunding (and many lawyers who are educating their clients about the risk of these “unknowns”).
Still, more and more states are enacting intrastate crowdfunding laws in order to provide another tool for local entrepreneurs in funding their ventures.
In Michigan, a house bill was proposed back in February to amend the MILE Act to permit issuers to open escrow accounts with financial institutions outside of the State of Michigan. You can see the text of the bill here. It doesn’t appear that the Bill has gained much traction. However, it is a good sign that the legislature is still evaluating ways to make the MILE Act a useful tool for local entrepreneurs.
Questions? Comments?
e-mail: Jeshua@dwlawpc.com
Purpose Driven General Counsel 