The introduction of rule 45-505 represents a huge step forward for capital raising and investment crowdfunding from coast to coast
Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
FrontFundr Secures Regulation for Connecting Entrepreneurs and Investors Across Canada
FrontFundr | Release | Jun 10, 2020
The introduction of rule 45-505 represents a huge step forward for capital raising and investment crowdfunding from coast to coast
TORONTO, June 10, 2020 (GLOBE NEWSWIRE) -- FrontFundr, Canada’s leading online investment platform for the private markets, recently announced the launch of Ontario Instrument 45-505. This new legislation allows FrontFundr to provide extensive, nationwide coverage for its platform, and opens up the private markets for all investors and entrepreneurs throughout Canada. It means that, for the first time, there is a clear and concise path for raising start-up capital across the country.
The rule, designed and implemented in collaboration with the Ontario Securities Commission (OSC), applies regardless of where entrepreneurs are or where they do business. Key features of 45-505 include that:
- The head office for the company is located in Canada (currently NL, PEI and the territories are not participating jurisdictions)
- Companies may raise up to $250,000 during a 90 day campaign, with a maximum of two campaigns per calendar year (in other words $500,000 total per year)
- The company raises no more than twice in a calendar year
- Each investor invests no more than $1,500, or $5,000, if deemed suitable
- FrontFundr operates as Exempt Market Dealer so can also use all other prospectus exemptions (such as the Accredited Investor exemption), concurrently with the 45-505, so companies can raise amounts greater than $250,000 per raise through the platform
“FrontFundr has been continuously innovating and advancing the private markets in Canada,” says Peter-Paul Van Hoeken, Founder & CEO of FrontFundr. “The 45-505 is another important step towards democratizing the private markets, providing companies better access to capital and enabling the public access to investment opportunities in promising companies.”
See:
FrontFundr Further Expands Investor Access to Private Investment Deals
FrontFundraCanadian Micro-Needle brand PKA SoftTouch reaches early goal on first equity crowdfunding campaign for ground-breaking medical technology
NCFA Response to CSA on NI 45-110 Harmonized Securities Crowdfunding Rules
Entrepreneurs looking to raise capital can find out more on FrontFundr’s website, and investors keen to explore current investment opportunities can check out current listings on the platform.
About FrontFundr
FrontFundr is Canada’s leading online private markets investing platform and an exempt market dealer. It provides startups and growth companies access to capital, and gives investors access to private companies they believe in and want to support. It provides a community of over 17,000 retail investors with the ability to review and complete private placements on one digital platform. The company’s revolutionary technology allows users across Canada to invest in innovative growth businesses in under 12 minutes, starting from as little as $250. To date it has helped more than 54 companies raise over $35 million. Connect with FrontFundr: Facebook | Twitter | Linkedin | Instagram
Source: release
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, 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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