Its great to be Canadian eh !!
It’s an exciting time to be in Canada. On March 20, 2014, the Canadian regulators proposed 4 ways that companies can raise capital in Canada via equity crowdfunding, and more importantly 4 ways investors can invest. This is a great start!!!
There is no longer going to be the issue of a investment gap in Canada. With the 4 proposed regulations companies now have options to raise capital during each stage of their company’s development.
Canada is the only country in the world that allows 4 types of equity crowdfunding regulations. Canada might have been late getting in the game but they are coming out with a bang!
The info graphic illustrates the <strong>four (4) proposed equity crowdfunding</strong> regulations.
No other country in the world today, offers this many choices to investors, companies and equity portals for accessing capital.
<strong>Option 1</strong>, the accredited investor exemption is similar to the rules in the USA, and other countries around the world. This exemption applies all across Canada.
<strong>Option 2</strong> the Offering Memorandum (OM) is very unique exemption to Canada.. This allows companies to raise capital from non-accredited investors with a specified disclosure document and risk acknowledgement requirements.
<strong>Option 3</strong> the Equity Crowdfunding exemption allows companies to raise up to $1.5Million annually, and investors have limits on how much they can invest. This option is also limited to certain provinces in Canada.
<strong>Option 4</strong> the Start up exemption allows anyone within the provinces that are adopting this exemption to raise up to $150,000 every 6 months, and investors have limits on how much they can invest.
With all these choices, these are very exciting times for Canadians. It is important for anyone interested in Equity Crowdfunding to make sure they receive proper advice from their legal counsel, accountants and board of directors on the most effective equity crowdfunding strategy for your company to raise capital.
To learn more about what is happening in Canadian Equity Crowdfunding Sector, follow Equity Crowdfunding Alliance of Canada (ECFA Canada) https://www.ECFACanada.ca.
Don’t miss this opportunity to learn about equity crowdfunding. <strong>FREE eBook</strong> on Equity Crowdfunding to get you started.
Jofre is one of the top 10 global thought leaders in Equity Crowdfunding, a Top 10 Fintech & Blockchain Influencer and a Top 50 InsureTech Influencer. Prior to co-founding KoreConX, Jofre founded SaaS-based, multilingual translation portal, BabelFish Corp. where he led a team of more than 135 individuals to provide multilingual solutions to 7,600 contractors around the world. He was awarded the Vision 2012 Businessman of the Year by the Toronto Hispanic Chamber of Commerce and is a globally sought after speaker on the topics including equity crowdfunding, blockchain, FinTech, compliance, shareholder management, alternative finance and RegTech.