Six provinces introduced new regulations in January for online fundraising tools after other provinces brought in rules in 2015
Ted Graham (Innovation Leader, PwC)
Cato Pastoll (Co-founder and CEO, Lending Loop)
Sophie Nicolaou (Head of Marketing and PR, Lending Arch) and Ryan Laidlaw (FinTexpert, Lending Arch)
Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Equity Crowdfunding, Alternative Funding
Startups navigate regulatory patchwork amid new equity crowdfunding rules
Business In Vancouver | March 21, 2016
Six provinces introduced new regulations in January for online fundraising tools after other provinces brought in rules in 2015
Many of Peter-Paul Van Hoeken’s biggest headaches faded away overnight when regulators introduced new equity crowdfunding rules in May 2015, allowing startups to raise capital online by offering company shares to non-accredited investors.
The founder and CEO of Vancouver-based FrontFundr had been dealing with a patchwork of regulators from different provinces as he prepared to launch an online crowdfunding portal for startups.
Suddenly the new startup exemption wiped away regulatory problems in six provinces, including B.C.
But in January, Ontario — along with five other provinces, not including B.C. — introduced an entirely new set of rules known as the integrated exemption.
FrontFundr’s portal now juggles regulatory differences created through the startup exemption, the integrated exemption and the older offering memorandum exemption.
“It’s really a problem,” Van Hoeken said.
“In Canada we have three crowdfunding rules today and Alberta is contemplating other rules.”
Alixe Cormick, a corporate securities lawyer and founder of Venture Law Corporation, said the fact provinces are introducing different exemptions is a sign of the industry’s potential.
“You should expect that there’s going to be more portals coming on board in the next year. Part of the issue to date has been the regulations weren’t clear,” she said.
It’s still “extremely early days” for crowdfunding portals in Canada, Cormick said, which is why regulations haven’t been harmonized across all provinces.
“The equity portals, it’s going to take a little while for them to develop their feet in part because there’s no clear exit mechanism for [the startups],” she said.
See: Recent Regulatory Developments in Equity Crowdfunding in Canada
“It’s not like they’re going to be listed on a stock exchange, it’s not like they’re going to be able to provide dividends.”
The startup exemption in B.C. allows issuers to raise $250,000 per campaign.
Startups can complete two campaigns a year and they’re not required to file financial documents or a prospectus. Investors are limited to $1,500 investments per year.
The integrated exemption in Ontario allows issuers to raise $1.5 million in one year, while investors are capped at $2,500 per issuer and $10,000 annually.
The offering memorandum exemption has no financial limits but the issuer must provide financial statements.
Investors must abide by the exemption offered by the province in which they live.
FrontFundr was the first online portal to close a deal in Canada under the startup exemption, helping Vancouver-based Guusto raise $50,000 for its gifting app in September.
It’s also the first portal to facilitate a campaign under the integrated exemption as Nova Scotia’s Lux Wind Turbines seeks to raise $800,000.
Continue to the full article --> here
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 About Us or visit ncfacanada.org.
Equity Crowdfunding Just Had Its First Billion Dollar Exit
Business Insider | Matthew DeBord | March 11, 2016
GM reportedly spent over $1 billion on a tiny startup that holds a key to the future of driving
General Motors announced on Friday that it would acquire Cruise Automation, a San Francisco-based self-driving-car startup founded in 2013.
Neither GM nor Cruise disclosed the deal price.
However, Fortune's Dan Primack and Kristen Korosec reported that GM bought Cruise for more than $1 billion, in cash and stock combined, as much as 10 times the company's valuation. A separate report in Re/code seemed to confirm the price.
GM declined to comment on how much it paid.
Cruise had raised $20 million from various investors. The startup was a product of the Y Combinator accelerator program.
The acquisition is expected to close in the second quarter, pending regulatory approval.
"GM shares a common vision for the deployment of autonomous vehicles at a mass scale — a clear and vivid vision," said Kyle Vogt, Cruise's founder and CEO.
See:
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Equity crowdfunding just had it's first $1Billion exit
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Move over Kickstarter, equity crowdfunding lets you get a piece of the action, not just a lousy T-shirt
He added that Cruise's 40 employees would remain in San Francisco but that the size of the team would be aggressively expanded. He declined to comment on how many new employees would join the company, which will be incorporated into GM's newly formed autonomous-driving group.
Vogt was previously involved with SocialCam and Twitch, the video-streaming site for video games that sold to Amazon in 2014 for $970 million.
In the past year, GM has been accelerating the pace of development for its electric- and autonomous-driving-vehicle technologies. The largest automaker in the US also made a $500 million investment in the ride-hailing service Lyft earlier this year.
The carmaker rolled out its Bolt electric car at the Consumer Electronics Show in Las Vegas in January, with plans to have it on the road by the end of 2016. GM also created a stand-alone ride-sharing brand this year, called Maven, and has placed autonomous-vehicle development in a single business unit.
"We're here to win," said GM president Dan Ammann, who joined Vogt to make the announcement. "We're super excited, and we have a very clear vision. We are very serious about leading, and we're committed to investment."
Both Ammann, who now sits on the Lyft board, and GM CEO Mary Barra have indicated the golden opportunity for the automaker is autonomous, electric-powered ride-sharing. The disadvantages of trying to integrate those technologies and services in conventional cars and trucks are overcome, in the thinking of GM's leadership, if fleets of driverless electric vehicles can be used in cities to provide mobility to customers who don't want to own a vehicle.
Ride-sharing is a very obvious place for GM to use Cruise's technology, Ammann said, as the automaker seeks to "fundamentally change the future of mobility."
Fully autonomous vehicles haven't yet hit the street, but GM and others, including Tesla, are now bringing partial self-driving technologies online in their cars. Ammann stressed that he expected GM's acquisition of Cruise to enable GM to bring full autonomy to market.
Continue to the full article --> here
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 About Us or visit ncfacanada.org.
Real Estate Crowdfunding – An Emerging New Asset Class
R2Crowd | Karen Dao | March 21, 2016
The Second Annual 2016 Canadian Crowdfunding Summit (CCS2016) was held on March 3 at the MaRs Discovery District in Toronto and placed focus on the future of crowdfunding in Canada. With the newly released equity crowdfunding regulations in January, there is huge momentum and growth potential for this industry. R2Crowd, a leading Real Estate Crowdfunding platform was honoured to join Canada’s leading innovators, leaders, investors and sponsors of crowdfunding, FinTech and financing alternatives.
The summit was officially opened by Ontario Finance Minister, Hon. Charles Sousa who delivered an impactful speech to a crowd of over 400+ highlighting the importance of innovation and the need to help small businesses access capital and resource networks to help them launch and scale into viable commercial entities.
“Those who innovate and stay ahead will become leaders and those who lag will fall off the wagon" expounded Minister of Finance, Charles Sousa on emerging fintech companies.
Amar Nijjar, debt capital markets expert and CEO/Co-founder of R2Crowd capital, participated on a speaking panel called ‘Hot Vertical: Real Estate Crowdfunding, an Emerging New Asset Class’ moderated by Brooks Barnett, Manager Government Relations and Policy at the Real Estate Property Association of Canada (RealPAC) explained, “We received an overwhelming response for our panel discussion and lunch & learn at CCS2016. We are on the forefront of connecting investors with quality commercial real estate opportunities in Canada.”
See: Alternative Finance Crowdfunding expands world of corporate real estate investing
Real estate crowdfunding was a $3billion industry in the US last year and is continuing to grow. Canadians are just realizing the potential of this market. In addition to the Syndicated Mortgage exemption, other exemptions such as the Accredited Investor exemption, Offering Memorandum exemption and the Start Up Exemption are used to open the doors for the private capital market in Canada reaching $150B and spanning a scope of 20 million Canadians who are able to qualify for debt or equity investments.
Investors and Real Estate sponsors open access to quality commercial real estate deals
Investors are able to reap a number of benefits by investing through a crowdfunded portal. They are able to gain access to quality commercial real estate offerings that they could not have prior. Investors can strategically choose properties by geographic location, asset class, stabilized or value-add assets and build a personalized portfolio. All of this can be done safely through online avenues like computer, mobile or tablet. Investors get to do full due diligence on the property they want to invest in and hold a direct title to it.
Average returns on such investments are typically in the 10-14% per year range. In today’s volatile stock market it makes a lot of sense to invest in good quality well located commercial real estate which is backed by underlying leases that offer stability of cash flow. Traditionally such investments were only open for wealthy investors as sponsors would ask for large cheques for e.g. in the amounts of $100,000 and up, however, with crowdfunding small investors can also now co-invest alongside wealthy investors and participate on the same terms.
Sponsors are also able to benefit through using a real estate crowdfunded platform as they are able to raise a significant amount of capital a lot faster, and at a lower cost than if they were to use traditional routes of capital raise. They are able to access our growing database of 120,000 investors, while reducing their workload as many intermediary processes associated with the traditional avenue are not costs effective and timely.
If you are interested in learning more about new capital raising and investment opportunities for investors and real estate sponsors, please visit us at R2Crowd.com for more information.
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 About Us or visit ncfacanada.org.
Canadian Crowdfunding Industry Poised For Take-Off
Locavesting | Amy Cortese | March 14, 2016
As a light snow blanketed Toronto, more than 400 people converged for the second annual Canadian Crowdfunding Summit March 2-3 in Toronto. Attendees had much to talk about: since the last time they gathered, Canada had enacted three new securities exemptions and begun harmonizing rules across the country.
The new rules coincide with a spike of new equity and debt platforms looking to jumpstart the country’s young crowdfunding industry. There are currently 120 crowdfinance platforms across Canada, including rewards, equity and lending—up significantly from a year ago.
“This is the industry’s startup year in Canada,” said Tabitha Creighton, CEO and cofounder of InvestNextDoor, a crowdlending platform active in the U.S. that is expanding to Canada. Creighton, a native of British Columbia, said the improving regulatory environment in Canada had prompted the move.
Canada faces unique challenges. In contrast to the U.S., which since the Securities Act of 1933 has operated under a federal securities framework, Canadian securities laws are set by its ten provinces and three territories. That has led to a patchwork of regulations (akin to the state “blue sky” laws in the U.S.)
As Canada’s largest province and its financial center, Ontario holds much sway. It attracts the bulk of the country’s venture capital investments, and half of Canada’s crowdfinance platforms are based there. The Ontario Securities Commission (OSC) has a reputation as a strict regulator, and its moves are closely watched—and often adopted—by other provinces.
That’s why Ontario’s embrace of the Integrated Crowdfunding Exemption, which went into effect on January 25, was so eagerly awaited. “We are committed to fostering a vibrant capital raising ecosystem and reducing regulatory burdens,” Monica Kowal, vice chair of the OSC told the assembled crowd. (Interestingly, more than half of the OSC commissioners, including the chair and vice chair, are women).
Canada’s current securities exemptions include the following:
Integrated Crowdfunding Exemption
Canada’s newest law is the Integrated Crowdfunding Exemption, which went into effect in Ontario, Manitoba, Quebec and New Brunswick on January 25. (Saskatchewan intends to implement the exemption as well).
Companies to raise up to $1.5 million from the public in a 12-month period under the law, and must provide investors with a crowdfunding offering document.
Retail investors are capped at $2,500 per deal and an aggregate of $10,000 per year, while accredited investors can invest $25,000 per deal and $50,000 in aggregate per year.
The first deal under Ontario’s exemption— an $800,000 raise by Lux Wind Turbines on the crowdfunding site FrontFundr—went live on March 3. Funding portals must register with the OSC or appropriate provincial authority.
Start-up Crowdfunding Exemption
In June 2015, six provinces— British Columbia, Saskatchewan, Manitoba, Québec, Nova Scotia and New Brunswick, adopted the Start-up Crowdfunding Exemption. Under that law, issuers can raise up to $250,000 from the public, up to two times per year. They must provide a crowdfunding offering document, but financial statements are not required. Investors are limited to $1,500 per deal.
Offering Memorandum Exemption
Another exemption, called the Offering Memorandum, allows issuers to raise money from the general public, with some limits. The OM, part of something called the National Instrument 45-106 Prospectus Exemption that preceded crowdfunding exemptions, has been available in most provinces, with slight differences. Several provinces impose limits on investors who do not meet the threshold of an “eligible” investor—defined as having an annual income of $75,000 (or $125,000 with a spouse), or net assets of $400,000, or being a close friend, family or business associate.
On January 13, Ontario became the last province to adopt the OM exemption, but with stricter terms. Retail investors can invest $2,500 per company, up to a maximum $10,000 total in the same calendar year.
Eligible investors, meanwhile, are capped at $30,000 per 12-month period, unless they receive professional financial advice. In addition, issuers must provide ongoing disclosure, including audited financial statements and annual updates on how the funds raised were spent.
At least five other provinces are adopting Ontario’s more stringent OM rules.
Continue to the full article --> here
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 About Us or visit ncfacanada.org.
Two takes on whether equity crowdfunding is a good idea
Financial Post | Christina Pellegrini and John Shmuel | March 11, 2016
One Take: New rules finally open up an alternative asset class for retail investors to access
For a long time, private equity in Canada was reserved for the wealthiest of investors — either institutional investors or accredited investors. Unfortunately, those designations are beyond the reach of the overwhelming majority of investors. In Ontario, an accredited investor must have financial assets (either alone or with a spouse) worth more than $1 million before taxes but net of liabilities, or have net assets of at least $5 million (again, alone or with a spouse).
Historically, these rules were designed to protect retail investors. That’s a good thing, but it also means that most Canadians have almost zero access to the private-equity market, which is detrimental. Private equity falls into the alternative assets category, has a low correlation to the broader market and is another form of diversification. And, as any fund manager will tell you, diversification is a good thing. The rules also mean that if a business wants to raise funds from the public, they have to do an IPO and meet a whole host of (often expensive) regulatory requirements — again, not ideal.
See:
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Recent Developments in Equity Crowdfunding in Canada
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2016 Canadian Crowdfunding Directory of platforms, funding portals and providers
Equity crowdfunding solves both of those issues. An equity crowdfunding exemption was introduced in January by six provincial securities commissions to bring private equity to the masses, with a set of rules and regulations that helps protect them at the same time. The provinces adopted a harmonized set of equity crowdfunding rules, which will allow companies, using registered online portals, to raise money from all investors. Accredited investors can invest up to $25,000 per company, up to a total of $50,000 yearly. For retail investors, the maximum will be $2,500 per investment. Other provinces have different rules, with British Columbia restricting individual investments to $1,500 and Ontario having a total cap for all equity crowdfunding investments of $10,000.
But the big takeaway is the new rule helps close the gap in choices that average retail investors have compared to their richer brethren. And that’s always a good thing. — John Shmuel
Another Take: Too many startups don’t make it past five years, and neither will your investment
New rules for equity crowdfunding in Canada permit ordinary people to diversify their portfolios and buy a stake in fledgling startups. But spotting the next Shopify Inc. or Kik Interactive Inc. early in their life cycles — way before they’re worth billions of dollars — is like finding a tiny needle in a tall, messy haystack.
Continue to the full article --> here
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 About Us or visit ncfacanada.org.
Event Wrap-up: 2nd Annual 2016 Canadian Crowdfunding Summit on March 3 (Toronto)
NCFA Blog | March 11, 2016
The 2nd annual Canadian Crowdfunding Summit (#CCS2016) on March 3, 2016 brought together a diverse crowd of companies, investors, providers, industry experts and leaders in the crowdfunding, fintech and altfi sectors. Over 440 attendees were in attendance, including 75+ speakers, 30 sessions and 12 pitching companies.
View the #CCS2016 event website | photo album | highlights video
Now in its second year, the Canadian Crowdfunding Summit (hosted by the National Crowdfunding Association of Canada) is Canada’s only national event on crowdfunding, alternative finance and fintech that brings together Canadian and international industry experts, leaders and innovators in the fast growing and lucrative crowdfunding alternative finance industry. With the newly released equity crowdfunding regulations across Canada and the emergence of marketplace lending and investment bank 2.0 platforms, 2016 is anticipated to be a year of exponential growth.
This year's Summit was officially opened by Ontario Finance Minister Hon. Charles Sousa, who endorsed the emerging industry, which helps build on the province's plan for economic growth and job creation.
Sharing our support to crowdfunding initiatives that build on ON’s plan for economic growth & job creation #CCS2016 pic.twitter.com/1Eq2mm0b9i
— Charles Sousa (@SousaCharles) March 3, 2016
Master of Ceremonies Michael Brancroft (Executive Producer of Bloomberg Canada TV and co-host of The Feed with Amber Mac on Sirius XM), Tim Jackson (EVP Corporate and Community Development, MaRS) and Craig Asano (founder and Executive Director of the National Crowdfunding Association of Canada) kicked off the summit at 8:30 am, with Hon. Charles Sousa ringing the opening bell.
View Official Opening Speech:
Honourable Charles Sousa, Endorses Canadian Crowdfunding Industry at 2016 Summit
The 2nd annual @NCFACanada#CCS2016 kicks off @MaRSDDpic.twitter.com/8nqpeb0bbv
— Michael Bancroft (@MBancroft80) March 3, 2016
Amar Njjar (CEO, R2CROWD), Tim Jackson (EVP Corporate and Community Development, MaRS), Hon. Charles Sousa (Ontario Finance Minister) and Craig Asano (Founder & Executive Director, NCFA Canada)
Hon. Charles Sousa with the media.
Following the official opening came the Summit's keynote speaker Bill Morrow (founder and CEO, Angels Den), who discussed what it takes for a crowdfunding ecosystem to thrive in a country, and not just exist based on over 8 years of insight from having operated Angels Den in the UK and internationally. There is an implied assumption from most crowdfunding platforms that startups "just" need cash to get up and running... but cash is only #3 on most angel investor's list of important factors to consider, after passion / excitement about the company, and altruism.
Bill Morrow head of Europe and Asia's largest angel network, said "I was so impressed with the vibrant ecosystem that we have entered into negotiations with a partner firm and two professional service providers with a view to setting up Angels Den in Canada. Hopefully we will see Angels Den return next year as a full member of The Association and playing a fuller part in the running of this amazing event"
We are a big fan of this guy... Entertainment and education. @BillMorrow #CCS2016 pic.twitter.com/BH98pkeFyP — LendingArch (@LendingArch) March 3, 2016
More @BillMorrow wisdom: entrepreneur's biggest assets are humility, empathy and ability to communicate #CCS2016 — Rubsun Ho (@rubsun) March 3, 2016
Following the keynote were a number of shorter TEDx-style talks and presentation on diverse topics covering Canadian and global market data and trends; the sharing economy; trust and transparency in the internet of money, diversity in crowdfunding; P2P lending and the future of banking; virtual reality; equity crowdfunding's impact on private and public markets, and marketing to millennials.
 Teri Kirk (CEO, Funding Portal) |
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 Bernd Petak (Founder and CEO, Finstripe) |
 Amy Cortese (founder and editor, Locavesting) |
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 Christopher Charlesworth (Co-founder and CEO, HiveWire) |
 Peter-Paul Van Hoeken (CEO, Frontfundr)
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Next came the much-anticipated panel " Fireside Chat with Crowdfunding Rockstars" moderated by Mark Evans (Principal, ME Consulting) with panelists Daniel Blumer (CEO/Co-founder, Revol Technologies Inc, whose raised over $2.6 million USD for their Revols product - Bluetooth earphones that mold to the contours of a person’s ears, earning them the new record for Canada's top crowdfunding campaign; Behrouz Hariri (Co-founder, Smart Nora), raised more than $1 million USD in pre-orders for Nora, the non-invasive and smart snoring solution and Judeh Siwady (CEO/Founder, Spacefy), who recently raised capital through equity crowdfunding for Spacefy, which gives creators access to unique and under-utilized spaces while allowing space owners to further monetize their spaces.
Up next #fireside chat with #crowdfunding rockstars at @NCFACanada #CCS2016 with @markevans pic.twitter.com/oGioL8ol3g
— Mell (@MellFeurtado13) March 3, 2016
Capacity crowd at #CCS2016 - great information so far! @FundRazr & @TeamSponsifi on next panel pic.twitter.com/jE7BAKbtLY
— Daryl Hatton (@DarylHatton) March 3, 2016
Finally, the morning session wrapped up with an industry experts panel on Regulatory Perspectives: What to Expect in 2016 with securities lawyers, the Ontario Securities Commission, an founders of leading crowdfunding and crowdlending platforms moderated by Alixe Cormick (President, Venture Law Corporation) and panelists Daryl Hatton (CEO, Sponsifi & FundRazr), Monica Kowal (Vice Chair, Ontario Securities Commission), Jason Saltzman (Partner, Dentons Canada LLP) and Kevin Sandhu (CEO, Grow).
Our partner @FundRazr # is addressing #innovation in #crowdfunding #CCS2016 @artsfundingca @NCFACanada pic.twitter.com/uiapoYYaej — ArtsFunding.ca (@artsfundingca) March 3, 2016
Then comes the mad dash to the buffet tables as lunch time rolls around! Several guests avoided the lines by going to R2CROWD's Lunch & Learn in the green room: How to Achieve 8-12% Annual ROI in Commercial Real Estate through Crowdfunding.
Another packed event @MaRSDD this one on crowdfunding #CCS2016 enjoy everyone! pic.twitter.com/NK9lS9uOaw
— AllysonHewitt (@AllysonHewitt) March 3, 2016
Want to learn about #realestate#crowdfunding? Join @R2CROWD's Lunch & Learn in the green room at 12:30 #CCS2016pic.twitter.com/3j3lFmDt81
— NCFA Canada (@NCFACanada) March 3, 2016
On #Crowdfunding, easier for retail investors to access opportunities with streamlined document: OSC Vice Chair Monica Kowal at #CCS2016
— OSC News (@OSC_News) March 3, 2016
For Profit BusinessCast 'Live at the Summit' podcast --> Listen Now
Hosted by Robert Gold
After lunch, the crowd chose from 5 concurrent afternoon streams of workshops, panel sessions and live pitching. Here's a look at the highlights from the Main Stage (Auditorium B+C), where the following sessions took place:
- 1:15 PM: The Emergence of Fintech in Lending: What it Means for Banks and Main St. [Moderator: Sarah Efron (Small Business Editor, The Globe and Mail), Panelists Kevin Clark (Co-founder and President, Lendified), Tabitha Creighton (CEO/Co-founder, InvestNextDoor) and Jeff Mitelman (CEO, Thinking Capital)]
- 2:00 PM: Investment Strategies: Why Leading Angels/VCs are Joining the Crowd [Moderator: Sunil Sharma (Managing Partner, Extreme Venture Partners), Panelists Janet Bannister (General Partner, Real Ventures), Karen Grant (Executive Director, Angel One Investor Network) and Jim Orlando (Managing Director, OMERS Ventures)]
- 3:00 PM: Market Makers: Equity Crowdfunding's Impact on the Innovation Economy [Moderator: Megan Cornell (Founder & CEO, Momentum Law), Panelists Sandi K. Gilbert (Founder & CEO, SeedUps Canada), Rubsun Ho (CEO, Crowdmatrix) and David Shore (Director, Investor Relations, OurCrowd)]
- 3:45 PM: Hot Vertical: Real Estate Crowdfunding, an Emerging New Asset Class [Moderator: Brooks Barnett (Manager, Government Relations & Policy, Real Property Association of Canada), Panelists Ann Kaplan (CEO, Brix RCR), Amar Nijjar (President & CEO, R2Crowd) and Hitesh Rathod (CEO, NexusCrowd Inc.)]
Happening now - Emergence of #Fintech in Lending: What it Means for Banks and Main. #CCS2016 pic.twitter.com/QDoRImM7jp — Lendified (@Lendified) March 3, 2016
Full house at the crowdfunding conference. @jebannister @JimROrlando @sunil_extreme @KarenGrant5 #CCS2016 @incubes pic.twitter.com/iIYdveFaxX — Ben Zlotnick (@BenZlotnick) March 3, 2016
The crowd is lead investors + posse of talented & passionate investors innovating business together #CCS2016 pic.twitter.com/h1JfQsFoLK — SeedUps Capital (@SeedUpsCanada) March 3, 2016
R2Crowd CEO Amar Nijjar at #CCS2016 #realestate #crowdfunding pic.twitter.com/gd7M8taDh7
— R2CROWD (@R2CROWD) March 3, 2016
Highlights from the Tactical Stream (Auditorium A), where the following sessions took place:
- 1:15 PM: Big Data Investment Trends and Digital Finance Technologies [Moderator: Asier Ania (Co-Founder, HiveWire), Panelists Steven Dryall (Principal, Incipient Technologies), Craig O'Neill (CEO & Director, Versapay) and Angela Wang (Associate Director, Big Data, North America, UnionPay Smart)]
- 2:00 PM: How Dubuc Motors, Canada's first EV car, is raising $25M in the US? [Moderator: Carlos Pinto Lobo (Chief Compliance Officer), Panelists Alixe Cormick (President, Venture Law Corporation), Mario Dubuc (Co-Founder & CEO, Dubuc Motors) and Mike Kakogiannakis (Co-Founder & COO, Dubuc Motors)]
- 3:00 PM: The Marketplace Lending Opportunity for Banks and Institutional Investors [Moderator: Dr. Sean Geobey (Assistant Professor at the School of Environment, Enterprise and Development, University of Waterloo), Panelists Jeff Brown (Vice President, Community Banking, Meridian), Tabitha Creighton (CEO/Co-founder, InvestNextDoor) and Colin Kilgour (Co-founder, First Marketplace Group)]
- 3:45 PM: Making the Most of Every Dollar Raised: Financial Planning for SMEs [Presenters: Darryl Irwin (Tax Partner, PwC) and Alan Lio (Senior Tax Associate, PwC)]
Big Data Investment Trends and Digital Finance Technologies panel.
#CCS2016 Dubuc motors very cool!! Raising money on crowdfunding portal in US pic.twitter.com/SDxFdLeIwg — Lauren Linton (@laurenlinton) March 3, 2016
Highlights from the Tactical Stream (CR2), where the following sessions took place:
- 1:15 PM: Crowdfunding Best Practices: Pre, Launch, and Post Campaign [Moderator: Christopher Charlesworth (Co-Founder and CEO, HiveWire), Panelists Bret Conkin (Founder & CEO, Crowdfund Suite), Khierstyn Ross (Founder & Podcaster, Uncut Entrepreneur) and Jaimy Warner (Executive Director, Raindance Canada)]
- 2:00 PM: The Longest 40 Days of Your Life: AMA (Ask Me Anything) [Moderator: Sunny Shao (Advisor, National Crowdfunding Association of Canada), Panelists Gareth Everard (Co-founder, Rockwell Razors), Viktor Grabovskyy (Co-founder, Forever Spin) and Corey Herscu (President, Herscu and Goldsilver)]
- 3:00 PM: Protecting Yourself, Your Business and Your Crowdfunding Investment [Moderator: Jeff Musson (President, Dynamite Network), Panelists Chantal Cipriano (Lawyer / Manager, Compliance, BMO Private Banking), Marvin Huberman (Barrister, Mediator, Arbitrator, Marvin J. Huberman) and Monica Tigleanu (Financial Institutions Underwriter, AIG)
- 3:45 PM: Community Capital and Locavesting [Moderator: Amy Cortese (Founder & Editor, Locavesting), Panelists Jennifer Bryan (Community Investment and Marketing Manager, SolarShare), Trish Nixon (Director of Investments, CoPower) and Adam Spence (Founder & Director, The SVX, MaRS Centre for Impact Investing)
Best#crowdfunding practices: the crowd isn't waiting for you, you need to bring them with you! #CCS2016 @HiveWireCA pic.twitter.com/AAvPr94rfn — Social Impact News (@socimpnews) March 3, 2016
#Crowdfunding AMA, tips and tricks to run a successful campaign. #CCS2016 pic.twitter.com/UBBdAFIxpr
— Crowdmatrix (@crowdmatrixinc) March 3, 2016
Panel talking ‘Protecting Yourself, Your Business and your Crowdfunding Investment’ at @NCFACanada #CCS2016 pic.twitter.com/ArumNtC0d1
— Startup Peel (@Startup_Peel) March 3, 2016
Learning Community & Locavesting at #CCS2016 We can crowdfund everything we need @locavesting@CoPowerIncpic.twitter.com/Fieqjdt5Jg — Revelstoke Economic (@BizinParadise) March 3, 2016
Highlights from the Meet & Greet (Green Room), where the following sessions took place:
- 1:15 PM: Meet & Greet with Dentons: Crowd Financing Options for Start-Ups [Kris Miks (Senior Associate, Denton and Jason Saltzman (Partner, Dentons Canada LLP)]
- 2:00 PM: Presentation & Discussion by OSC: Ontario's Crowdfunding Regime (MI 45-108) [Maria Carelli (Senior Accountant, Compliance and Registrant Regulations, Ontario Securities Commission) and Rick Whiler (Senior Accountant, Corporate Finance Branch, Ontario Securities Commission)]
- 3:00 PM: Hosted by NexusCrowd: Crowdfunding Real Estate Primer for Accredited Investors [Hitesh Rathod (CEO, NexusCrowd Inc.)]
Meet & Greet with Dentons: Crowd Financing Options for Startups
Meet & Greet with the Ontario Securities Commission.
.@nexuscrowd pitches a real estate crowdfunding platform to the crowd at #CCS2016 but only accredited investors 🙂 pic.twitter.com/7OW2wrfOnr — Murray McKercher (@MurrayMcKercher) March 3, 2016
And last but certainly not least, highlights from the Live Pitching stream (CR3) where 12 startups pitched in front of a panel of judges and the crowd for "Front of the Line" Golden Tickets to CBC Dragon's Den auditions.
- 1:15 PM: Live Pitching Live Pitching 1 – Session Lead: DMZ (post-revenue)
Pitchers: Pinnguaq (Ryan Oliver), SmartHalo (Xavier Peich), Riipen (Richard Tuck)
Judges: Bill Morrow (Angels Den), Sherif El-Tawil (DMZ), Kathryn Wortsman (MaRS)
- 2:00 PM: Live Pitching Live Pitching 2 – Session Lead: Founder Institute (pre-revenue)
Pitchers: Vizwik (Simon Gauvin), Flipd (Andres Moreno), Rna Diagnostics (John Connolly)
Judges: Kamal Hussein (IncMind), Dr. Marat Ressin (YEDInstitute), Russell Samuels (Whitecap Venture Partners)
- 3:00 PM: Live Pitching Live Pitching 3 – Session Lead: Startup Canada (post-revenue)
Pitchers: Stashbelt (Jonah Brotman), Comfable (Neda Ghazi), The Sharing Depot (Ryan Dyment)
Judges: Sean Burke (Frontfundr), Jim Orlando (OMERS Ventures), Sean Wise (Ryerson University)
- 3:45 PM: Live Pitching Live Pitching 4 – Session Lead: MaRS (3:45 PM pre-revenue)
Pitchers: Yirego (Megan Savage), NERv (Amr Abdelgawad), Eye-LIVE (Murray McKercher and David Baker)
Judges: Ben Zlotnick (INcubes), Mark Skapinker (Brightspark Ventures), Anthony Lipschitz (Thinking Capital)
Richard Tuck pitching Riipen.
Ryan Oliver pitching Pinnguaq.
Xavier Peich wins the first live pitching session with SmartHalo.
Simon Gauvin pitching Vizwik.
Andres Moreno pitching Flipd.
John Connolly wins the 2nd live pitching session with Rna Diagnostics.
Jonah Brotman pitching Stashbelt.
Neda Ghazi pitching QTempSmart, Comfable's flagship product.
Ryan Dyment wins the 3rd live pitching session with The Sharing Depot.
Amr Abdelgawad pitches NERv Technology.
Murray McKercher and David Baker pitch Eye-LIVE Media.
Megan Savage wins the final live pitching session with the Drumi, Yirego's flagship product.
The crowd gathers back in the main auditorium for the closing panel, closing keynote and closing remarks for the day, including a power panel of experts discussing the future of crowdfunding and the democratization of finance moderated by Erin Bury; a look at P2P decentralized networks by Anthony Di Iorio, who raised over $18 million for his Ethereum crowdfunding campaign (the 5th largest crowdfunding campaign in the world, also partially funded by bitcoin); and finally closing remarks by Adam Nanjee, Head of Fintech at MaRS.
#CCS2016 don't be the taxi durin Uber disruption @BillMorrow @mkatchen @artimodi_ @BerndPetak @Wealthsimple pic.twitter.com/LHNJB8SBe3
— Manan Buch (@MananRBuch) March 3, 2016
Time for our closing keynote @diiorioanthony of @TMXGroup and @ethereumproject! #CCS2016 #bitcoin #blockchain pic.twitter.com/aBwRRy1XRX — NCFA Canada (@NCFACanada) March 3, 2016
Packed @MaRSInnovation #ccs2016 final keynote. Too many good conversations #crowdfunding . Follow me to connect ! pic.twitter.com/uaUFDgU1ah — Ian Khan PMP (@IanKhanLive) March 3, 2016
.@MaRSDD #FinTech lead @adamnanjee - closing remarks to conclude a great @NCFACanada #CCS2016 conference! pic.twitter.com/ZGywtKgwFV — FrontFundr (@FrontFundr) March 3, 2016
It's on ice! Getting ready for the reception after a full day. Thanks @highlanderbrew #ccs2016 pic.twitter.com/0ogyQQi2gk — NCFA Canada (@NCFACanada) March 3, 2016
It was good to be here at #CCS2016. Thanks to @NCFACanada and all the event organizers /managers pic.twitter.com/vpHAh2Cbq7 — RIC Centre (@RICCentre) March 3, 2016
Big thanks to everyone who attended this year's Summit and all the sponsors, speakers, community partners and volunteers who helped make this event possible! We hope to see you again in 2017!
View the #CCS2016 event website
THANK YOU TO ALL OUR #CCS2016 SPONSORS AND PARTNERS:
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 About Us or visit ncfacanada.org.
Crowdsourcing expands world of corporate real estate investing
Boston Globe | Jay Fitzgerald | March 4, 2015
Would you invest in a 40-year-old warehouse in Avon with no control over how it’s run or when it might be sold?
Twelve investors did just that, pooling together about $250,000 to join an investment group that bought the warehouse last year for $14.3 million.
Crowdfunding has mostly been associated with tech startups and inventors, who broadcast a mass appeal for donations that can range from just a few bucks to thousands of dollars. But since Congress passed the 2012 JOBS or Jumpstart Our Business Startups Act, there have been about 80 companies trying to expand the world of real estate investing.
“It’s opening up real estate to smaller retail investors,” said Josh Klimkiewicz, whose Boston-based firm, Acquire Real Estate LLC, put together the crowdfunding deal for the Avon warehouse. “Crowdfunding is going to be part of the future.”
Related: NexusCrowd Closes Second Commercial Real Estate Investment Offering
And why not? Commercial real estate in particular has produced strong returns, significantly outperforming US stocks even during the bull market of the past few years.
“I think it’s fantastic,” said Steve Weikal, a researcher and lecturer at the MIT Center for Real Estate. “Crowdfunding has the real potential to disrupt the entire real estate industry.”
Typically commercial real estate deals have been limited to big-money investors, such as pension funds or specialty shops whose executives have years of experience. Because of the complex financing often involved in such deals, real estate investing has not generally been a province for novices. And opening it up to the masses does make some investment professionals uneasy.
Related: Get the 2015 Crowdfunding for Real Estate Industry Report
“Frankly, it scares me a bit,” said Susan Milona, a Boston-based financial advisor for Brown Advisory, an investment firm that represents institutional and high-net-worth investors. She questioned whether the companies rushing to cash in on the crowdfunding craze have the right background to help inexperienced investors.
“Who are these companies? What research have they done?” Milona asked. “You need a very vigorous, step-by-step research process before you invest in any real estate.”
Some of the executives behind the new crowdfunding companies do have years of experience in the real estate world. Klimkiewicz, for example, started Acquire Research after working at commercial real estate firm CBRE-New England, where he was vice president of capital markets.
Brandon Jenkins, the cofounder of Fundrise, one of the most prominent firms, worked at a commercial real estate investment firm in Washington. Fundrise, has invested about $100 million in more than 40 real estate deals across the country, and Jenkins expects to do his first deal in the Boston area soon.
Some firms, such as Acquire Real Estate, only accept funds from so-called accredited investors, which the US Securities and Exchange Commission defines as having incomes above $200,000 — or $300,000 for a married couple — or have assets beyond their primary home worth more than $1 million.
Related: Real Estate Crowdfunding: Overview
Companies that offer crowdfunding opportunities to those wealthier investors don’t have to have those offerings registered and reviewed by the SEC, while those soliciting money from non-accredited investors do. Fundrise solicits from either type, so long as the investor can afford the minimum $1,000 investment.
Investors make money by sharing in the income from rents the property generates, and any profit from a sale. But the terms of each investment, as well as the fees investors must pay, can vary greatly from company to company, from deal to deal. Fundrise and Acquire Real Estate each charge investors a 1 percent fee on total investment. If the property is sold, Acquire, for example, charges an additional 5 percent on the original investment.
‘It’s opening up real estate to smaller retail investors. Crowdfunding is going to be part of the future.’
Depending on a crowdfunding firm’s policies, investors can sometime back out of a deal early. Acquire Real Estate has set up an internal online exchange in which only other accredited investors from the firm can bid to buy out that interest.
Related: Crowdfunding grows as real-estate investment option
Weikel from MIT cautions investors to carefully analyze all documents and research the company making the offering.
Klimkiewicz concentrates on investments below $15 million, which he says are generally too small for most large institutional investors. His firm researches potential deals — such as collecting data on a property’s rental income, tenants, past sales, and estimated returns — and then sets up a limited liability company that will participate in the deal alongside other investors.
For the Avon warehouse, Acquire raised more than $250,000 from 12 accredited investors for its limited liability company. But final say over the Avon operation goes to the new owner and manager, Novaya Real Estate Ventures, a veteran Boston real estate firm that owns or invests in many properties around the region.
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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 About Us or visit ncfacanada.org.
