Crowdfunding … the ability to raise money through relatively small contributions from a large number of people. If you haven’t heard about it, we’d like to tell you about it. Crowdfunding platforms are raising capital for small businesses around the world and Gartner Research has estimated that they will generate $6.2 billion by 2013. We know that Canadian start-ups are starved for access to venture capital, especially for their first $1 million and based on Global activity, it looks like Crowdfunding can help fund that gap. By embracing Crowdfunding here, Canadian investors can provide critically needed growth capital for Canadian businesses.
At present, there are no defined rules for Crowdfund Investing (“CFI”) in Canadian securities regulations today; therefore the CFI market has not yet evolved in Canada as it has in other Global jurisdictions. The Ontario Securities Commission (“OSC”) issued a consultation paper in December of 2012 and is currently reviewing over 100 responses submitted by interested stakeholders. Several other jurisdictions including the Alberta Securities Commission (“ASC”) issued prospectus exemptions designed to give small to medium businesses better access to capital. CrowdCapital has developed a business model that works within these securities regulations giving it a “first mover” advantage that allows non-accredited or retail investors access to private equity investments through its online platform. Investors will have 24 / 7 access to details about the offerings, can request to speak with management and subscribe to the offering all within the CrowdCapital secure platform.
CrowdCapital is expected to launch in Q3 2013 so we’ll be ready to connect Canadian investors to Canadian entrepreneurs soon.
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