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Michigan Crowdfunding News for Social Entrepreneurs

Happy Friday!

Last Thursday I presented on “Social Entrepreneurship” from a Legal Perspective at the Grand Rapids Area Professionals for Excellence (GRAPE)

If you couldn’t make the presentation and you’re interested, I believe my power point presentation has been made available through the GRAPE website.

Social Entrepreneurship: #PurposeDriven

I love Shawn Miller’s twitter posts on Social Entrepreneurship – they all have the hashtag #purposedriven. That sums up social entrepreneurs in my opinion.

In my presentation I defined Social Entrepreneurs as individuals who, in their business ventures, are driven by a purpose much greater than their own self-interest. That purpose is to do some good in this world.

In my presentation I didn’t have much time to delve into the specifics of “crowdfunding” as it relates to Michigan law; however, I left the audience with one final point: my belief that crowdfunding is a viable tool for social entrepreneurs.

Latest Michigan Crowdfunding Headlines

A noticed a few news headlines concerning social entrepreneurs utilizing crowdfunding:

#Crowdfunding underway for burger eatery  “Chomp Burger” in downtown Adrian, MI.

Three area businessmen have launched a rewards-based crowdfunding campaign to help secure a loan for a proposed $1 million Chomp Burger restaurant in downtown Adrian.

http://www.lenconnect.com/article/20150325/NEWS/150329429/1995/NEWS

Three area businessmen have launched a rewards-based crowdfunding campaign to help secure a loan for a proposed $1 million Chomp Burger restaurant in downtown Adrian.

Crowdfunding campaign launched to support Portland’s Red Mill Pavilion 

According to the article, “the Red Mill Pavilion project will provide residents and visitors with new recreational opportunities and help bring new vitality to downtown Portland,”

Michigan’s Economic Development Corp Innovates with Crowdfunding

Portland’s project is interesting because it is part of a matching grant program with the MEDC’s “Public Spaces and Community Places” Program.

The MEDC program “mobilizes community members, residents and general supporters to make individual contributions while promoting their efforts to others… Projects meeting fundraising goals can receive a matching grant from MEDC of up to $100,000.”

These are innovative examples of how crowdfunding can be utilized by social entrepreneurs.

It’s also an example on how local government sees the value in crowdfunding, and it supports my belief that crowdfunding, including intrastate “equity” crowdfunding is not going away.

Equity Based v.s. Donor Based Crowdfunding

Both of the news stories are great examples of “rewards based” or “donors based” crowdfunding.

Individuals are asked to contribute funds to a worthy project without retaining any ownership stake in the project.

Michigan’s MILE Act deals with “Equity- based Crowdfunding”

As I’ve written in detail before, the MILE Act allows any Michigan resident (local) to “invest” up to $10,000 in a  local project that is otherwise compliant with the MILE Act. Those investors retain ownership in the Project.

I believe the MILE Act is a way to connect local individuals to own and take part in local ventures that add value to a local community. 

If you’re interested in learning more about funding portals, connect with one of the handful of  Crowdfunding Website Operators where Michigan issuers can go to begin a MILE Act project.

You can check out Michigan’s Crowdfunding Website Operators

Included in that list is West Michigan Based Loquidity

Questions? Comments?

email: Jeshua@dwlawpc.com

www.dwlawpc.com

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