Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Equity Crowdfunding Breaks Records in Canada
Capital Markets | April 25, 2025
Image courtesy of FrontFundr
Equity Crowdfunding Surged as Retail Capital Became a Lifeline for Startups in 2024
Last year in 2024, Canada's early stage funding markets were under pressure. According to Canadian Venture Capital Association (CVCA) data, venture capital slowed with early stage deals down 19%, as institutional investors focused on later stage companies to mitigate risk in a less than certain climate. In response, more founders turned to equity or investment crowdfunding, providing their network with the opportunity to directly invest in their ventures.
See: Blossom Sets Canadian Equity Crowdfunding Record
As a result, equity crowdfunding enjoyed a breakout record year with FrontFundr at the forefront, with the platform raised $68.3 million CAD in 2024, an 86% increase from the prior year. That included 4,226 individual investments across 66 deal campaigns, for the strongest year since launching the exempt market dealer in 2015. To celebrate, FrontFundr published the 'Community Capital Report 2024: From Slowburn to a Breakout Year" covering all the highlights and trends of investment crowdfunding in Canada with some highlights around the globe.
FrontFundr Highlights 2024
- $68.3 million raised (up from 36.7 million in 2023)
- 93% market share under the National Instrument 45-110 start-up crowdfunding exemption
- $3,426 average investment (10% year over year increase)
- 3,193 new investors (up 28% from 2023)
- 23% of investors made multiple investments
- 87% of funded companies remain active and 13.7% have had a liquidity event
In total, FrontFundr has raised $258 million from 28,000 investments since inception.
2024 Featured Campaigns
Below are three companies that raised significant amounts of capital by mobilizing investment from their communities instead of spending heavily on advertising:
See: How Fintechs Are Unlocking Value in Private Markets 2024
- Edison Motors raised $2.4 million. They reached the $1.5 million crowdfunding cap in one week thanks to over 620,000 TikTok followers
- Blossom Social raised $1.35 million dollars from 742 investors in just 3.5 days (set a platform record for speed)
- Sheringham Distillery raised $1.2 million through direct community outreach and personalized follow ups without any paid ads
2024 Growth Sectors
The finance sector continues to lead in total capital raised (primarily through income focused offerings for accredited investors), While finance continued to lead in total capital (mainly through income focused offerings for accredited investors), sectors with strong consumer and community alignment grew faster in number of deals and investor participation.
- Finance $55.4 million in MICs, REITs, and funds (81% of total capital)
- Technology $3.4 million (up 17% from 2023)
- Manufacturing $2.6 million (from 1,337 transactions)
- Food and Beverage $2.9 million (mostly through distilleries with strong consumer brands)
2024 Growth Regions
- Ontario $35.6 million (408% increase)
- British Columbia $26.1 million
See: Public Market Challenges and Equity Crowdfunding Capital
- Alberta $2.4 million
- Saskatchewan notably saw an increase in traction with the first use of the province’s 45% startup investment tax credit
FrontFundr's Platform Innovations
Various improved tech and service features helped the adoption of equity crowdfunding and made investing easier. These upgrades helped expand access to both retail and accredited investors while positioning the platform as a bridge between Canadian and international deal flow.
- A redesigned investment process increased conversion and reduced drop-off
- 85% of transactions were processed automatically (up from 70%)
- FrontFundr Elite Circle launched to support strong investors with early access and personalized support
- StartEngine partnership opened access to U.S. private markets including AI companies backed by top venture capital firms
Why This Matters
Canada’s innovation economy needs alternative funding models that work in both growth cycles and downturns. Equity Crowdfunding and community capital are helping early stage companies stay alive, grow, and build closer relationships with the people who use and believe in their products.
See: CCA Report: State of Investment Crowdfunding 2025
Equity crowdfunding is not a replacement for venture capital but it's an essential complement to fill early stage funding gaps, especially for companies that are mission driven, customer focused, or seeking to grow without giving up control. And for investors, it’s a great way to gain access and participate in deals that are typically reserved for larger investors while investing in companies they personally like while receiving an equity stake of ownership in return.
The 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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