Equity crowdfunding is a type of equity financing whereby people (‘the crowd’) invest in an early-stage unlisted company, in exchange for shares (equity) in that company. Is your business ready to take on investors?
Equity crowdfunding is a type of equity finance whereby people (‘the crowd’) invest in an early-stage unlisted company, in exchange for shares (equity) in that company. Individual investors thus become shareholders and stand to profit if the business does well – they might also lose some or all of their investment. Equity crowdfunding usually takes place over an online platform.
Geared towards B2C based businesses given the viral effect of a crowd campaign. Normally targeted at Seed Stage businesses, Canadian businesses can raise up to $1.5m which is an upper limit enforced federally by The Canadian Securities Administrators (CSA).
FrontFundr is Canada's leading online investment platform. They use technology to provide Canadians with access to investment opportunities in private companies, and offer companies an online channel to efficiently raise capital from seasoned investors and the general public.
Think Dragon’s Den, but for everyone! To date they’ve helped more than 85 companies raise over $80 million collectively and built up a community of 30,000 users across Canada.
Equivesto connects innovative, driven, inspired Canadian businesses with the capital they need to grow & succeed through our community-sourced investment platform.
You have to bring at least 20% of the money to the table before you can raise on a crowdfunding platform
You get charged on the money you bring to a crowdfunding platform
You have to share a lot of documents and information publicly, so easy for competitors to get hold of
From small businesses it is a large upfront cost in time and money in creating all the video and image assets needed for the campaign
The main thing to assess when analysing a crowdfunding platform is the size of the their funding network, their funding roadshow roadmap, case studies of businesses like yours, what % they're going to charge you, what $ they're going to charge you on the money you've already raised, the minimum amount of money you need to have raised before going on the platform, confirm the use of a nominee structure, and campaign commitments before launch in terms of time and investment.
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