Category Archives: Equity Crowdfunding

Canada’s Largest Investment Crowdfunding Platform Hits $10 Million of Combined Capital Raised to Support Growing Canadian Businesses

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Digital Journal - FrontFundr Release | April 9, 2019

Investment crowdfunding is an alternative source for companies seeking capital to grow their businesses.

VANCOUVER, BC, April 09, 2018 /24-7PressRelease/ -- "We are pleased to announce that we have now raised a combined $10 million for Canadian companies through our online platform," said Peter-Paul van Hoeken, FrontFundr's C.E.O. "We have enabled over 18 Canadian companies to obtain the funding they need to grow while creating communities of supporters and advocates for each company's products and services."

Craig Asano, Founder and CEO of the National Crowdfunding and Fintech Association, NCFA Canada said. "We are thrilled to see the growth of FrontFundr and congratulate them on reaching the $10 million milestone! It clearly demonstrates the availability and potential of investment crowdfunding capital to support the growth of Canadian businesses."

See:  How to Effectively Market an Equity Crowdfunding/Reg A+ Offering

Investment crowdfunding is an alternative source for companies seeking capital to grow their businesses. Partly available in some Provinces it was fully legalized in 2015. Crowdfunding not only allows Canadians to invest in private companies, from as little as $100, but it allows companies access to capital and a community of stakeholders. A recent example, and part of the $10 million raise, is Red Mountain, that enabled people to own a piece of a ski hill in British Columbia, Canada. Over $2,500,000 was raised through the campaign, from 742 backers, many of whom gained perks such as lift passes as well as shares.

About FrontFundr:

FrontFundr is an online investing platform that empowers Canadians to find and make direct investments in the private companies they believe in - and become stakeholders in their future. FrontFundr's online exempt market dealer (EMD) status plus its modern technology lets users across Canada easily invest in innovative growth businesses in under 12 minutes and starting from $250. Own your share.

View source:  here

 


The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry in Canada.  For more information, please visit:  www.ncfacanada.org

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Becoming a dragon in my own right.

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FrontFundr | Jill Earthy | March 29, 2018

My parents were really good at giving me advice about most things. Most things that is, except investing. I guess they were brought up being told that you don’t talk about money. We never had any serious conversations about investing, which never bothered me until recently. I had reached that point in life (finally) where I had a good job, paid off my student loan, and had some rainy day money in the bank. It all left me wondering, what’s my next step?

I read a blog about the 50|30|20 rule, and I stick to that: 50% for fixed costs, essentials, food, rent, getting to work, 30% for discretionary spending, and 20% for saving.

I know I want to buy a condo and get on the property ladder, so that is a big goal for me. I have an online advisor who is helping me get that nest egg together. I’m maxing out my available RRSP limit which is 18% of my income. 10% of that I’ll use for my down payment, and the other 8% will go towards actually retiring one day.  That leaves me with 2% of my income to invest as I see fit. But until recently, I was still struggling with where. And how?!

A couple of weeks ago I was scrolling Facebook and saw ad online for FrontFundr. Turns out they are Canada’s largest investment crowdfunding platform (which essentially is like crowdfunding for adults - instead of perks or early access to products, you get shares in private companies). I never knew that investing in private companies was even an option for me, given I’m no Kevin O’Leary!

See:  Peter-Paul Van Hoeken, CEO and Founder of FrontFundr, Joins National Crowdfunding Association of Canada’s Advisory Group

Speaking of Dragon’s Den, I already knew that I loved watching the show and choosing the companies I would back if I were a Dragon. FrontFundr is kind of like that. I just go on their website, review the opportunities, and can invest starting at $100.

So, I did it, I backed a company with a very cool product. I completed the whole process from my phone, and it took me about 10 minutes once I decided which company I liked. I love the company. The team know what they’re doing and the numbers stack up. I know this is high risk, but I also know this is a company that I believe in -- I want them to be successful. I like the fact I can go out with my friends and talk about the company. It’s my company; I own shares in it. Most of my other investments are personless, I don’t connect with anyone, but this is one where I can truly say I own the shares.

Now you can #OwnYourShare of Canada’s largest online investment platform:

Become a dragon and invest in companies YOU believe in, starting at $250. Learn more from this person’s experience - http://blog.frontfundr.com/becoming-a-dragon-in-my-own-right

 

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The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry in Canada.  For more information, please visit:  www.ncfacanada.org

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Federal budget keeps Canada’s fintech sector in the ‘valley of death’

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The Globe and Mail | OpEd Michael King | March 1, 2018

Michael King is associate finance professor at Ivey Business School, University of Western Ontario.

In the world of startups, the period when entrepreneurs are spending cash to build out a new product or service but have no revenues is known as "the valley of death." The only way to survive is to find an investor who believes in the idea and is willing to finance it to production and to find customers fast. Almost as important as cash, however, is mentoring and strategic advice from someone who believes in the founders.

Currently, Canada's fintech industry is in the valley of death and is looking for mentoring, strategic advice and customers. The sector has been growing rapidly, investing in innovative products, but has yet to get traction. Canada's 2018 federal budget was a missed opportunity for Finance Minister Bill Morneau to voice his support for this innovative sector, to raise awareness among Canadians, to be a leading customer for these innovations, and to set a national strategy for this industry to succeed globally.

See:  NCFA Submission to Finance Canada (March 2018):  Urgent Need for Regulatory Change and Government Support

It is ironic, because the 2018 budget continues to focus on the right themes: promoting innovation; equipping Canadians with the skills to succeed in the digital economy; and creating economic growth and opportunity for all. Despite these lofty goals, the budget fails to mention the one sector that has the potential to achieve all three objectives: financial technologies or "fintech." In fact the word appears only three times in 367 pages, and then only in an annex.

Fintech innovations are affecting the daily financial activities of all Canadians – paying, saving, borrowing or investing. Whether you are paying a bill on your phone, transferring money abroad, taking out a loan online, comparing insurance using a website, or investing in an exchange-traded fund, Canadians will be seeing many improvements as fintech innovations are introduced by incumbents and new entrants alike. They will also likely be dealing with many non-traditional financial providers eager to bundle their product – whether it is social media, e-commerce, or part of the sharing economy – with unbundled financial products (e.g. a loan, an investment, or an insurance policy).See

The question no one is asking is whether these fintech innovations will be coming from a Canadian company or a foreign one.

While Canada has a highly educated work force, finance expertise, and talented entrepreneurs, it seems the Canadian government is indifferent whether these innovations are grown at home or imported from abroad. Canada's fintech ecosystem is not getting the support and attention directed at other crucial sectors, despite financial services accounting for 7 per cent of GDP and 4.4 per cent of all Canadian jobs. Of the government's five superclusters announced last month, financial services was a noteworthy gap.

What is behind this benign neglect for an important industry? It cannot be that Canadians are not hungry for simpler, less costly, and more responsive banking and financial services. The evidence from other countries is that fintech can enable higher savings for low-income individuals, access to capital for cash-starved small businesses, and better access to all financial services for underserved segments of the population. In many parts of their world, fintech innovations are democratizing access to finance and promoting growth from the bottom up.

See:  BCSC Consults Fintech Stakeholders and Requests for Comments (Closing April 3)

It may be that the government does not want to disrupt a stable financial system that has performed well over time. But that is not the attitude in countries such as Australia, where they view fintech as a valuable improvement and have committed to use government procurement to get startups on their feet.

Canada's growing fintech sector needs to hear that it is a valued part of the emerging digital economy, with great opportunities for jobs, investment, and growth. Britain, Australia, Hong Kong, Germany and Singapore are cheerleading their sectors. But as the Competition Bureau bluntly stated in a recent study, "Despite the attention that fintech is generating, Canada lags behind its international peers when it comes to fintech adoption."

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The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, and networking opportunities to over 1600+ 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.  For more information, please visit:  www.ncfacanada.org

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FrontFundr and SeedUps Canada announce partnership

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FrontFundr and SeedUps Canada Release | Feb 21, 2018

CALGARY / VANCOUVER - February 15, 2018: Four years ago, two visionaries began the process of reducing barriers for Canada’s early stage companies accessing growth capital. They each developed unique models to tackle this challenge, working closely with securities regulators and gaining buy-in from the early stage ecosystem. They have now come together to leverage their experience and momentum and help more companies and investors throughout Canada.

One, Sandi Gilbert, developed a suite of technologies that simplified the complexities of capital creation and management with a focus on the angel investing community.  The SeedUps platform, and its deal flow app AngelBot, has showcased over 50 companies to its angel network; and DealPoint, a SaaS solution for the private capital markets, has transacted over $4 million in exempt investment since its launch late last year. Next up - a blockchain solution where entrepreneurs and investors can manage their shareholdings post raise.

The other, Peter-Paul Van Hoeken, created FrontFundr, a national Exempt Market Dealer with a proprietary online platform that democratizes Canada’s private capital markets by allowing all Canadians to invest in early stage and growing private companies. FrontFundr has emerged as Canada’s clear leader, having assisted more than 20 companies to raise a combined total of over $8M from a wide range of Canadian investors - not just the 1%. This initiative has unlocked capital across Canada and broadened investor access to a multitude of opportunities.

Get Tickets Now:  2018 Fintech & Funding Conference:  FFCON18 VELOCITY | Toronto March 5-6

SeedUps and FrontFundr have now partnered to provide entrepreneurs with a full suite of tools to access the resources and capital they need to grow and scale their businesses. This partnership will help entrepreneurs prepare for and engage with a wide range of new investors; from retail to angels to institutions and investment funds - online and offline. Post investment technologies to help companies and their shareholders better manage their investments will bring transparency to private investing overall.

“Peter-Paul and I have long had similar visions to help entrepreneurs access capital in what we call the ‘funding gap’”, states Gilbert. “By matching our resources with an entrepreneur’s needs, we can increase the probability of a successful outcome for the entrepreneur and its investors”.

 

“This partnership supports our joint mission to truly democratize investing in private companies in Canada. We are bringing together professional venture capital and everyday Canadians to invest in companies that they believe in” says Van Hoeken.

Entrepreneurs are an essential contributor to the Canadian economy, with small business representing over 98% of businesses in Canada. New models of support and access to capital are critical for Canada’s growth.

Interested in exploring investment opportunities for all Canadians, visit FrontFundr

If you are a growing company preparing to capital raise, visit SeedUps Canada

 

For further information, please contact:

Sandi Gilbert at sandi@seedups.ca or Peter-Paul Van Hoeken at peter-paul@frontfundr.com


The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a national non-profit actively engaged with social and investment crowdfunding, alternative finance, fintech, peer-to-peer (P2P), initial coin offerings (ICO), and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, networking opportunities and services to thousands of community members and works closely with industry, government, academia and eco-system partners and affiliates to create a vibrant and innovative fintech and online financing industry in Canada.  For more information, please visit: www.ncfacanada.org

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Regulation Crowdfunding Surpasses $100,000,000 in Capital Commitments – Signaling an Industry that is Here to Stay and Reaching $1 Billion in the next 5 years

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Crowdfund Capital Advisors | Sherwood Neiss | Jan 25, 2018

According to Crowdfund Capital Advisors, today is a historic day for online finance and Regulation Crowdfunding in particular. The industry passed a major milestone surpassing over $100 million in capital commitments.

“We’ve been anxiously waiting for this milestone,” said Sherwood Neiss, Principal at Crowdfund Capital Advisors. “It proves that the model is working, capital is flowing to those companies that need it most and jobs are being created. There’s no doubt, based on the rational growth of the industry since May 2016 that Regulation Crowdfunding and online finance are here to stay and will play a significant role in funding startups and small businesses in the future.”

“Regulation Crowdfunding brings a digital footprint to all offerings for the first time in 80 years. The  transparency this provides regulators and investors sheds sunlight on what was prior an opaque process.  The data and dollars show that the industry is working,” said Jason Best, Principal at Crowdfund Capital Advisors.

“We expect the industry to really begin to scale at this point of inflection. Our model estimates that over $1 billion will be funded to startups and small businesses within the next 5 years and over 25,000 jobs will be created.”

See:  The 2017 State of Regulation Crowdfunding: US Securities-based Crowdfunding under Title III of the JOBS Act

Karen Kerrigan, CEO of the Small Business and Entrepreneurship Council said, “It is great to see the funding bottleneck being addressed for small businesses, capital flowing around the country, and jobs being created in cities and regions that need it most. However, this is the tip of the iceberg. There is more that we can do. Bringing more attention to Regulation Crowdfunding as well as addressing some of the sticking points in the law will help further expand capital access and opportunity for entrepreneurs in every corner of the country.”

Key insights from CCLEAR as of today are:

  • $100,072,759 in capital commitments (95% went to successful campaigns)
  • 731 campaigns launched
  • 100,901 investor commitments
  • Average is $992 per investment (up from $750 when the industry started May 16, 2016)
  • Average raise is $360,691 (up from $250,000 when the industry started)
  • Total jobs supported is 3,608 to date
  • It took 410 days for the industry to raise the first $50M and 209 days (50% less time) for the industry to raise the next $50M
  • Companies in 45 states filed to raise capital

Crowdfund Capital Advisors collects data from companies raising funds online via parts of the JOBS Act and in particular Regulation Crowdfunding. The database, known as CCLEAR publishes a daily dashboard of industry activity and is used by the media, educators, industry stakeholders, government organizations, and multilateral organizations. The data visualization tool provides a clear understanding as to where capital is flowing by region, industry and even gender. It’s major benefit allows for transparency into a segment of the private capital markets that has been operating in the shadows.

For more info visit:  Crowdfund Capital Advisors

 


The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a national non-profit actively engaged with social and investment crowdfunding, alternative finance, fintech, peer-to-peer (P2P), initial coin offerings (ICO), and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, networking opportunities and services to thousands of community members and works closely with industry, government, academia and eco-system partners and affiliates to create a vibrant and innovative fintech and online financing industry in Canada.  For more information, please visit: www.ncfacanada.org

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Canabis Company True Leaf Raises $14 Million in Cross Border US – Canada Crowdfunding Offer

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Crowdfund Insider | | Jan 28, 2018

This past week, True Leaf Medicine International Ltd. (CSE: MJ) (FSE: TLA) (OTCQB: TRLFF), announced it had closed on CDN $14 million in a cross border crowdfunding offer that saw participants by investors in both the US and Canada. True Leaf raised CND $10 million from US investors utilizing Reg A+ six weeks after the US Securities and Exchange Commission (SEC) qualified the offering.  Reg A+ investors purchased 14,285,715 common shares at a price of CDN $0.70 per share, with a minimum investment of 500 shares per investor. Shares were sold to both public retail investors as well as traditional accredited and institutional investors.

FlashFunders, part of Boustead Securities, listed the Reg A+ offering in the US. CrowdfundX assisted in the promotion of the offering. Approximately 339 investors participated in the Reg A+ offering  with an average investment amount of CDN $12,727 and a mean of C$29,500.

Keith Moore, Chief Executive Officer of Boustead, said he always believed True Leaf had the ingredients for a successful Reg A+. The combination of a compelling product in the fast emerging Cannabis sector heightened investor interest.

See:  True Leaf: Crowdfunding Legal Cannabis Products Across North America

Simultaneously, True Leaf raised over CDN $4 million in a Canadian private placement selling 5,788,078 common shares at a price of CDN $0.70 per share to Canadian investors only.  The Canadian concurrent accredited investor and offering memorandum (OM) offering had approximately 195 investors participate with an average investment amount of CDN $6,202 and a mean of CDN $20,800. The securities issued pursuant to the Canadian offering are subject to a statutory hold period of four months and one day.

With the offering fully closed, True Leaf is the first Canadian cannabis related company to have qualified a Reg A+ offering with the SEC. The company is a reporting issuer in Canada and listed on the Canadian Securities Exchange and quoted on the OTCQB.

Alixe Cormick, the securities attorney who handled the cross border securities sale, told Crowdfund Insider;

“A successful Regulation A offering is a team effort. True Leaf had a solid team and outside support from the CSE. It also helped that True Leaf is involved in a rapidly growing industry with strong investor interest on both sides of the border.”

True Leaf is an interesting company. The business has two main operating divisions: True Leaf Medicine Inc. and True Leaf Pet Inc. True Leaf Pet is an established business that offers hemp based products for pets that are both THC and CBD free (so no stoned pets).

True Leaf Medicine was created in 2013 to provide Cannabis for both recreational and medical use. As many people know, Canada will fully legalize Marijuana usage across the country in 2018. True Leaf has been granted approval to build out a Marijuana grow facility by Health Canada. The facility is located in Lumby, British Columbia, Canada. True Leaf has applied for a license to provide Cannabis to the Canadian market and it is currently in a holding pattern to hear from the public authorities which have been working through the approval process.

Currently there are 89 licensed producers in Canada (Ontario leads with 48) that may provide Cannabis for medical use. Last year, Health Canada indicated it would speed up the approval process and since that time more producers are receiving approval as interest in Marijuana cultivation grows.

See:  U.S. pot industry: High tech, high finance, and high times

It has been reported that Canadians spent CDN $6.2 billion on Cannabis in 2015 – an amount similar to wine consumed. An estimated 4.9 million people used 698 metric tons of Marijuana –  before recreational use has become fully legalized and in a country with a population of 37 million. Some people believe there is a risk that producers will not be able to keep up with demand once recreational use kicks in towards the end of the summer. Tax revenue from regulated Marijuana is expected to be about CDN $450 million.

In the end, legal Marijuana production and consumption is poised to become a far bigger business than it is already. Legal cultivation is expected to remove production from the grips of organized crime while providing a new source of tax revenue. If federal legalization takes place in the US, companies like True Leaf may be able to expand their market dramatically. Yes, that is a big if in the case of the current administration, but most everyone agrees that medical marijuana makes sense and no one wants it controlled by criminals.


The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a national non-profit actively engaged with social and investment crowdfunding, alternative finance, fintech, peer-to-peer (P2P), initial coin offerings (ICO), and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, networking opportunities and services to thousands of community members and works closely with industry, government, academia and eco-system partners and affiliates to create a vibrant and innovative fintech and online financing industry in Canada.  For more information, please visit: www.ncfacanada.org

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Canadian Startup Equibit Wants to Decentralize the Securities Industry

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Coinsquare | | Jan 13, 2018

Equibit Group is a Canadian blockchain company with plans to decentralize the securities industry.

Formed in 2015, their vision is to create the ultimate registration system for intangible assets, and move the securities industry onto the blockchain. The platform will allow anyone to transfer value without the need for an intermediary. They believe their system will be as valuable to a bank as it is to an individual investor.

Traditionally third parties like custodians are responsible for maintaining complex records for the ownership of securities. Co-founder and CEO Chris Horlacher saw that the blockchain could create a more trustless system which removed the need for third parties while increasing security.

Horlacher became intrigued with Bitcoin after first hearing of it in 2010. At the time a little-known technology while the world recovered from the financial crisis, he saw an opportunity. He saw that the core technology behind Bitcoin could be modified to serve the securities industry.

Real Also:

Chris Horlacher, Chairman; CEO, Equibit Development Corporation, Joins NCFA’s Ambassador Program

Canadian EDCs Blockchain Crowdfund Scores $0.5m In Equibits Cryptocurrency Sales

ENTERPRISE SOLUTIONS

Equibit Group has three apps which allow users to interact with their blockchain in different ways.

EquibitCore allows users to participate in network consensus by running a full node. EquibitCore will soon be pre-released to a select group of miners, who will create the necessary hash power needed to maintain the network. Once completed, the team plans to launch EquibitCore to the public.

They have also developed Equibit Portfolio,  a web-based wallet where users can store their Equibits. Investors can also store securities purchased through the Equibit network in the wallet.

What’s unique about Equibit, though, is that investors can buy and sell securities on the network without the need for a transfer agent.

Equibit Supernode is an app that aims at enterprise solutions. Companies can use Supernodes in many flexible ways, such as creating their own securities-related infrastructures for situations like raising capital or safely managing the assets of clients.

EQUIBIT AND BITCOIN

Equibit is based on the Bitcoin protocol. The company paid homage to this fact when they embedded a news article into the genesis block, which they recently mined. The news article could be viewed by the miners who were pre-selected to run full nodes.

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The National Crowdfunding Association of Canada (NCFA Canada) is a national non-profit actively engaged with social and investment crowdfunding, alternative finance, fintech, peer-to-peer (P2P), initial coin offerings (ICO), and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, networking opportunities and services to thousands of community members and works closely with industry, government, academia and eco-system partners and affiliates to create a vibrant and innovative fintech and online financing industry in Canada.  For more information, please visit: www.ncfacanada.org

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