Category Archives: Crowdfunding Portals

Are Overseas Portals the Next Big Thing in US Equity Crowdfunding?

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Crowdfund Insider | By | March 21, 2017

Non-resident US funding portal registration

Much excitement has been generated with the enactment of Regulation Crowdfunding (Reg CF) and the ability of non-accredited investors to invest in startup companies in the United States. The SEC recently reported that while early capital raising efforts is still growing, Regulation Crowdfunding has provided a new mechanism for small, domestic issuers to raise capital that was previously unavailable.

There is speculation that soon, with a Republican Administration in Washington focused on deregulation, Regulation Crowdfunding may be a “huge” beneficiary, including an expansion permitting an issuer to raise $5 or perhaps even $10 million per annum, rather than the current $1 million limit. While a common complaint during its first year is that the issuers themselves must be domestic United States companies, the same does not hold true for crowdfunding portals.

Regulation Crowdfunding specifically permits “nonresident” funding portals to operate in the United States.

A nonresident funding portal is a funding portal incorporated in or organized under the laws of a jurisdiction outside of the United States, or having its principal place of business in any place not in the United States. Thus you can operate overseas and still be permitted to engage in business as a U.S. funding portal.

See:  Title III Crowdfunding For Real, Part I

Nonresident portals can quickly broaden US crowdfunding efforts to overseas, and raise foreign investor (crowd) capital for US companies. This together with the benefit that a crowdfunding portal is specifically exempt from broker-dealer registration under Exchange Act section 15(a), provides ample incentive to foreign entrepreneurs to seek to participate in US small issuer capital formation.

Nonresident funding portals share the same benefits as domestic funding portals, including the right to post offerings on their portal and receive transaction-based compensation (commission and equity) for their services. Nonresident funding portals may even have a competitive advantage in accessing capital for US crowdfunding offerings. MrCrowd.com and its CEO Allen Au, based in Hong Kong, appear to be the first nonresident funding portal to see an opportunity and become registered with FINRA.

For the US Securities and Exchange Commission (SEC) to permit nonresident funding portals to be based outside of the US, the portals must be subject to SEC and Financial Industry Regulatory Authority (FINRA) regulation. Registration of a nonresident portal is conditioned on an information sharing arrangement in place between the SEC and the competent regulator in the jurisdiction under the laws where the nonresident funding portal is organized or has its principal place of business.

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The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding stakeholders across the country. NCFA Canada provides education, research, leadership, support and networking opportunities to over 1500+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada. Learn more at www.ncfacanada.org.

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[Montreal FrontFundr Event Mar 29]: Collecte de fonds en ligne : Votre nouvelle alternative de financement

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FrontFundr | Jill Earthy | March 22, 2017

FrontFundr event in Montreal

Raising Capital Online: The New Funding Option

Collecte de fonds en ligne : Votre nouvelle alternative de financement

Wednesday, March 29th/Mercredi 29 mars: 5:30 - 7:30 pm

McMillan LLP, 1000 Sherbooke O./W., #2700, Montréal

Register here: https://frontfundr5a7montreal.eventbrite.ca

 

Participez à notre 5@7 afin d’en apprendre davantage sur l’investissement participatif et partager un verre avec les membres de l'équipe de FrontFundr.

Cet événement est une occasion pour les entreprises, les investisseurs potentiels et tous les curieux de se rencontrer, et de parler de l'opportunité de lever du capital en ligne ainsi que de l’investissement participatif au Canada.

Venez donc rencontrer le CEO de la plateforme de Frontfundr, Peter-Paul Van Hoeken, de passage à Montréal afin d'en apprendre davantage sur la levée de capitaux en ligne. Faites vite, les places sont limitées!

Come to our 5@7 to learn more about equity investing and share a drink with members of the FrontFundr team.

This event is the occasion for companies, potential investors, and those who are simply curious to come out, network, and learn all about the opportunities of raising capital online and the equity crowdfunding landscape in Canada.

Come and meet the CEO of the Frontfundr platform, Peter-Paul Van Hoeken, to learn more about raising capital online.Please RSVP in advance, as space is limited!


The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding stakeholders across the country. NCFA Canada provides education, research, leadership, support and networking opportunities to over 1500+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada. Learn more at www.ncfacanada.org.

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Exploration company jumps on crowdfunding bandwagon

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BIV | By March 14, 2017

Kal minerals

B.C.-based Kal Minerals is first junior miner in Canada to take advantage of platform

Though still gaining traction in Western Canada, crowdfunding is now being tapped by all types of industries as a leg up for accelerated growth.

B.C.-based junior mining company Kal Minerals Corp. has turned to Vested Technology Corp.’s online crowdfunding platform to build out its portfolio and expand the company.

“Kal Minerals is the first exploration company in Canada that is using the crowdfunding exemption offered by the British Columbia Securities Commission,” said David Patterson, chief operating officer at Vested.

Vested is a Vancouver-based startup crowdfunding platform that is not registered under Canadian securities legislation.

“The portal,” Patterson said, “allows a passageway for private companies to meet with private investors to fund small amounts of money through many investors, up to $250,000 twice a year.”

Equity crowdfunding has been legal in B.C. since May 2015, but he said this is the first time the option has been used this way in the province.

“This is definitely a milestone for junior exploration in B.C., but also for people that want to see how crowdfunding works at the grassroots level.”

See:  2017 Canadian Online Funding Directory

“Ray played football for SFU, so I’ve known him from a few different walks of life,” Patterson said. “I also played football at the school.”  Wladichuk, who played in the Canadian Football League for two years before starting Kal Minerals, studied engineering at SFU with a focus on alternative energy.  He obtained his degree in earth sciences.  His company is focused on aluminum alloys and other related metals and minerals.  “We are trying to build a portfolio of good projects,“ Wladichuk said.  That portfolio begins with the option of earning 100% interest in the Jack White property in B.C.’s New Westminster mining division, between Merritt and Hope.

“This B.C. property has great copper numbers and is in a regional scandium-high area, which is the best aluminum-strengthening alloy,” said Wladichuk. “We’ve already raised $70,000 for exploration, which is Step 1 for building this company up.”

The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding stakeholders across the country. NCFA Canada provides education, research, leadership, support and networking opportunities to over 1500+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada. Learn more at www.ncfacanada.org.

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Canada’s First Entertainment Crowdfunding Platform Launches for All Investors

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FundingNomad | Brad Kerr | Jan 9, 2017

fundingnomad

FundingNomad brings the best and most exciting entertainment opportunities to Canadian investors, online, while maintaining full securities compliance.

TORONTO, Jan 9, 2017  – FundingNomad (fundingnomad.com) has officially launched Canada’s first entertainment crowdfunding platform for Canadian investors, opening up the market for companies to run campaigns that raise financing from the “crowd” for entertainment projects (stage shows, musicals, films, movies, direct-to-digital media, interactive exhibits, performances, and recreation/hospitality). Accredited and Retail Investors across the country can sign-up and invest for free on FundingNomad’s secure portal that is fully compliant with Canadian securities regulations.

FundingNomad’s crowdfunding platform is dedicated to entertainment and media investments, and is backed by its own respected and experienced Exempt Market Dealer (EMD) that has been financing entertainment deals for many years. The platform employs high security, privacy, scalability, as well as an automated and intelligent engine that controls the campaigns that investors are permitted to invest in, and how much they can invest based on their financial accreditation status.

See:  FundingNomad at 2017 Crowdfinance Summit in Toronto on Feb 28-Mar 1

brad_kerr_sq_b

Brad Kerr, CEO, FundingNomad

Crowdfunding in Canada is growing rapidly and is expected to be a $190 million market in 2016, an increase of 48% over 2015. It is even larger in the United States, at well over $36 billion. “Canadians have a tremendous opportunity to be a part of this global investment phenomenon that puts the power, convenience and control in the investor’s hands, together with strong regulatory oversight,” stated Bradley Kerr, CEO and co-Founder of FundingNomad.

“We are pleased to be able to bring Canadian investors the best entertainment deals from around the world, and allow them to become equity investors with the top producers, and share in the rewards.”

According to Joe Kodjian, Chief Compliance Officer and co-Founder of FundingNomad,

“Many people are familiar with donation crowdfunding where they receive a t-shirt or a gift for their donation to a campaign. Equity crowdfunding, on the other hand, gives real ownership and this is what most investors have been looking for. However, this market is highly regulated and that is why we spent over a year to develop our secure and compliant platform for all investors.”

Crowdfunding accelerates the commercialization of new products, ideas and services in Canada to compete globally and strengthen Canada’s entrepreneurial backbone at grassroots levels. According to Craig Asano, Founder & Executive Director of the National Crowdfunding Association of Canada, “Crowdfunding is not solely a provincial issue. Nor is it entirely a federal one. It is a Canadian issue. All governments need to examine what they can do to improve the ability of SME’s to tap this potentially huge funding source.” FundingNomad is a member of NCFA Canada, which is the only trade association actively engaged with both social and investment fintech crowdfunding and alternative finance stakeholders across the country. Learn more at http://ncfacanada.org

Investors interested in entertainment deals are invited to sign-up for a free account on FundingNomad at www.fundingnomad.com or to contact FundingNomad at info@fundingnomad.com. Members of the press may contact FundingNomad at press@fundingnomad.com.

fundingnomad

fundingnomad-campaigns

About FundingNomad

FundingNomad is the best and most exciting way to invest in entertainment crowdfunding – online, securely and compliantly. Investors from around the world can invest in global entertainment projects (stage shows, musicals, films, movies, direct-to-digital media, interactive exhibits, performances, and recreation/hospitality) developed by the most experienced and successful production companies that have been fully vetted and approved. Past campaigns include Mat Franco Magic Reinvented Nightly, Rock of Ages Las Vegas, Absinthe at Caesar’s Palace, and many more. For more information and to create a free investor account, go to www.fundingnomad.com.

Source:  FundingNomad Release

Media Contact:
Bradley Kerr
FundingNomad
416-639-2020 ext 3
brad@fundingnomad.com

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FrontFundr first in Canada to raise $650K equity capital through its own platform

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FrontFundr Release | December 21, 2016

frontfundr-invest-in-the-revolutionFrontFundr raises $650K on its own online funding and investment platform

December 21, 2016 (Vancouver, BC) – For the first time in Canadian history a business, FrontFundr, has self‐funded on its own equity crowdfunding platform. To great success, FrontFundr has exceeded its target raise by 130%, raising a total of $650K from 200 investors utilizing its own crowdfunding platform to facilitate the raise. These funds will take the company to the next level, allowing FrontFundr to build out its position as the leading online investment platform in Canada, and expand to the U.S..

In May 2015, FrontFundr introduced equity crowdfunding to Canada through the launch of the first online investment platform. The concept is simple. Instead of raising funds exclusively from the wealthy elite, per traditional startup fund raising, FrontFundr allows businesses to raise funds from anyone. Unlike traditional crowdfunding that involves a donation of money in exchange for a product or service (like Kickstarter), FrontFundr allows companies to raise real money in exchange for real ownership. This concept is similar to the popular show Dragon’s Den, except the crowd can participate and become an owner in a business—not just high net worth individuals.

“We’ve been helping businesses across Canada raise funds from the public over the past eighteen months,” says FrontFundr CEO Peter‐Paul Van Hoeken. “It’s been a fun ride and we’ve loved sharing in these companies’ successes. We decided it was our turn to walk our talk. We’re a young company too in need of capital, so it made perfect sense to use our own platform and tap into our brand champions for our raise. We are overwhelmed by the success and the support and thrilled to have exceeded our target raise by $150K”

See:  Impak Finance raises largest single-day amount for Canadian equity-crowdfunding initiative

In addition to its own raise, FrontFundr has helped 9 other Canadian companies get funding from the crowd since its launch, ranging in amount from $50,000 to $2 Million. In addition to closing its own raise, this week FrontFundr’s platform also saw the close of a raise for Montreal’s Impak Finance—a new company that plans to build Canada’s first socially responsible bank.

While the introduction of equity crowdfunding, the traditional investment models of yesterday are becoming completely revolutionized. By opening investment opportunities to the public, Canadians are able to access opportunities they were previously locked out of, and companies are able to access capital that was previously inaccessible. It’s a win‐win, where people are now able to support and share in the potential success of companies they believe in in a meaningful way, and at the same time young companies are able to fund their businesses and continue their growth. In fact, FrontFundr has seen an uptake in the number of shares being purchased as gifts for others this holiday season. In 2017, FrontFundr expects to see continued exponential growth on its platform as more entrepreneurs become aware of the opportunity to access capital from the crowd.

To learn more about investing online in private companies and to browse live investment opportunities, visit FrontFundr.com.

About FrontFundr

FrontFundr is a fintech company that enables entrepreneurs to raise capital from all Canadians.  Investing in private companies was previously limited to angel investors and venture capitalists, but after recent regulatory changes, private investing is now open to a wider spectrum of investors. Canadians can now invest online in companies that they believe in through the FrontFundr platform alongside seasoned investors, while directly contributing to innovation and sharing in the growth of companies they believe in. FrontFundr operates its online investment platform as a fully registered Exempt Market Dealer (EMD) in eight provinces in Canada.

For more information, photos or interview requests, please contact Jeannine Bartz at Jeannine@frontfundr.com or 604‐306‐0207.

The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding stakeholders across the country. NCFA Canada provides education, research, leadership, support and networking opportunities to over 1500+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada. Learn more at www.ncfacanada.org.

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Indiegogo Announces Equity Investing For All

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Indiegogo Blog | Nov 15, 2016

indiegogo-and-microventures

Indiegogo:  We’re excited to introduce a new equity crowdfunding service that gives anyone the power to invest in startups. We’ve partnered with MicroVentures, a leader in the equity crowdfunding space, to introduce this platform that gives everyone access to invest in innovative startups and growing companies.

Unlike rewards-based crowdfunding, with equity crowdfunding, individuals receive company shares, not just perks, in exchange for their equity investment. Not only can businesses gain the crucial help they need from a broader pool of funders—but investors can support business they believe in, and can even benefit financially if a company goes on to greater heights.

See: 

Equity crowdfunding only exists because the equity crowdfunding rules passed by the Securities and Exchange Commision (SEC) as part of the 2012 JOBS Act allow anyone the opportunity to invest in companies online. Previously, only a select group of accredited investors that met a certain wealth threshold could invest in early-stage private companies.

We founded Indiegogo based on the idea that everyone should be able to get the funding they need to turn their idea into reality. We were proud to be involved in helping craft the 2012 JOBS ACT and firmly believe access to capital shouldn’t be restricted to a small, select group of individuals.

Now you (yes, you!) have a chance to invest in new technologies and ideas, with potential financial returns. We work directly with entrepreneurs across industries, so you can partner with the innovative startups that interest you most.

Investing in startups means you may own a piece of the company and are along for the ride, with all the ups and downs. You may not have a seat at the boardroom table, but you can help a great idea come to life.

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The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding stakeholders across the country. NCFA Canada provides education, research, leadership, support and networking opportunities to over 1450+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada. Learn more at www.ncfacanada.org.

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Lending Club secures $1.3 bln to be lent by National Bank of Canada, reports quarterly loss

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SMN Weekly | By Henry Hughes | November 7, 2016

Lending Club

Lending Club, the largest alternative financing provider in the US, announced it has secured $1.3 billion to be lent through its platform by the National Bank of Canada in the next 12 months.

The investment will be undertaken by Credigy the US subsidiary of the bank, which specializes in consumer finance investment.

“We’re pleased to add this platform purchase program with Credigy to our investor capital mix. As we take multiple strategic actions to enhance our marketplace, we see the Credigy program as a way we’re further diversifying our investor base and adding the funding visibility and stability that can make us even more resilient in various market conditions,” said Scott Sanborn, President and CEO at Lending Club.

“Lending Club is a clear leader in delivering access to unsecured consumer credit. Based on Lending Club’s track record of loan performance and our extensive review, we are excited to establish this purchase program and invest on the platform,” said Brett Samsky, CEO of Credigy.

See:  Acknowledging the Value of Lending Club, Even as It Stumbles

Meanwhile, Lending Club reported a net loss of $113.7 million for the first nine months of 2016 and a net loss of $36.5 million for the third quarter. This includes $1.7 million of goodwill impairment in the quarter ended September 30, 2016 and $37.1 million year to date in 2016.

At the same time in Q3 the loan originations rose 1% over the quarter, to $1.97 billion, but fell 12% on an annual basis.

Since its founding in 2006 Lending Club has facilitated near $23 billion (as of end of September) in P2P loans and manages a servicing portfolio of nearly $10.9 billion. This is 42% higher compared to the $7.7 billion at the end of the same period last year.

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The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding stakeholders across the country. NCFA Canada provides education, research, leadership, support and networking opportunities to over 1300+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada. Learn more at www.ncfacanada.org.

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