Global fintech and funding innovation ecosystem

Go Alberta New Equity Crowdfunding Portal Launches

Launch Release | Jul 18, 2024

GO Alberta equity crowdfunding portal

Image: GO Alberta, Equity crowdfunding portal

A New Equity Crowdfunding Portal Dedicated to Servicing Albertan Small Businesses has Launched

July 17, 2024, Calgary AB - A new equity crowdfunding portal, Go Alberta, has announced it's launch, and is aimed at helping Alberta's small businesses. Throughout the province, small and medium-sized businesses (SMEs) will be able to access a community-driven finance solution.  Go Alberta's goal is to empower local companies by introducing them to a variety of investors so they can raise the capital they require to expand and prosper. By democratizing investment options, this platform enables regular Albertans to contribute to and profit from the success of regional businesses.

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There are numerous of benefits to raising an equity crowdfunding campaign, such as:

  • Offers an innovative and accessible way for companies to obtain capital, particularly those that are having trouble obtaining traditional finance.
  • Gives Albertans the opportunity to support via investment the economic development of their local communities.
  • Investors benefit when the companies they support develop and succeed, fostering a win-win situation in support of local economies.

Equity Crowdfunding Regulations

In Alberta and across Canada, equity or investment crowdfunding is governed by laws that safeguard investors and encourage SMEs to raise cash responsibly. National Instrument 45-110 (NI 45-110), which describes the Start-Up Crowdfunding Registration and Prospectus Exemptions, is the main regulatory framework.

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Key Provisions of NI 45-110

  • Businesses can raise up to CAD 1.5 million within a 12-month period.
  • An offering document outlining the company, the securities being issued, and the intended use of the proceeds must be prepared by issuers.
  • Accredited investors may contribute up to CAD $25,000 per offering, while non-accredited investors may invest up to CAD $2,500 per offering, with an annual cap of CAD 10,000.
  • Crowdfunding portals need to comply with operating guidelines and register with the appropriate provincial securities regulator.

Alberta Considerations

  • Local companies may be able to take advantage of certain Alberta-specific local exemptions.
  • To maintain accountability and transparency, companies and portals need to comply with all reporting requirements set by the Alberta Securities Commission.

Advocacy for Equity Crowdfunding

Equity crowdfunding provides a crucial option in the present funding environment, when the volume of traditional venture capital funding has decreased. Many prospective SMEs struggle to get the capital they need since traditional venture capital funding frequently favours larger, more established enterprises. Go Alberta fills in this void by:

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  • Providing businesses with access to a broader pool of potential investors - a diversification of funding sources.
  • Empowering businesses to raise capital independently of the volatile venture capital markets.
  • Encouraging a diverse range of businesses, including those in early stages, to innovate and grow with a supportive investor community approach.

Conclusion

Equity crowdfunding is a movement to democratize investment in local communities.  By connecting businesses with passionate investors, Go Alberta is paving the way for a more vibrant and resilient local business ecosystem.


NCFA Jan 2018 resizeThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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