AngelList Syndicates finally launches in Canada via new OSC program (with some caveats)

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Betakit | | Oct 24, 2016

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It has been 20 full months since Hootsuite’s Ryan Holmes told BetaKit that he wanted to run the first AngelList Syndicate in Canada to invest in Canadian entrepreneurs. Thanks to a new program partnership between AngelList and the Ontario Securities Commission (OSC), that opportunity is now available to investors in Ontario.

As of tomorrow, eligible investors will be able to invest in Creative Destruction Lab and NEXT Canada startups raising capital through an AngelList Syndicate (the startups must be headquartered in, or have significant operations in, Canada). Interested investors must meet Ontario’s accredited investor criteria as well as screening criteria from AngelList itself.

As of tomorrow, eligible investors will be able to invest in Creative Destruction Lab and NEXT Canada startups raising capital through an AngelList Syndicate.

See:  [Breaking Oct 24, 2016]: Regulator Unveils OSC LaunchPad, a first for Canada

Investing in non-Canadian startups, or startups outside of CDL and NEXT Canada’s programming requires a different set of compliance standards, as part of a decision which the OSC confirmed will be published shortly (BetaKit will have full coverage of those additional requirements as soon as they’re live on OSC’s website). The OSC also confirmed that program partnership grants AngelList limited relief from certain registrant obligations and prospectus requirements for two years, with the time-limit designed to let the program run in a test environment the OSC can evaluate.

The announcement comes the same day that Toronto FinTech startup Lending Loop received OSC certification, as well as the launch of OSC’s LaunchPad initiative, designed to help early-stage FinTech startups navigate regulation.

Pat Chaukos, Chief of OSC LaunchPad, said that the flurry of initiatives by the OSC spoke to a “recognition that we need to evolve as well, and that we need to keep pace with the changes brought on by these [startups], and not get in the way.”

“Right now is the right time, right place, and I think it will be just a matter of time until [AngelList Syndicates is] across Canada.”

While CDL and NEXT Canada are the only two “approved incubators” currently in the program, more will be added. Chaukos spoke to the need for approved partners as part of the program to instill confidence amongst Canadian investors and add a layer of protection atop AngelList’s processes. “They [AngelList] do some due diligence, but at the same time there’s a bit of a ‘buyer beware’ model” to the platform, Chaukos said.

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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