Crowdfund Insider | JD Alois | Jun 29, 2015

SeedUps Canada, a leading equity crowdfunding platform operating out of Calgary, is joining a growing number of platforms that are leveraging their own technology to self-crowdfund their company. SeedUps is reaching out to their growing number of users, and beyond, to capitalize on their first mover status in Canada.  The capital injection will help SeedUps to educate both investors, and entrepreneurs, about the opportunity of crowdfunding and drive future growth as they seek to disrupt traditional finance.

SeedUps would like to raise up to $500,000.  They see this amount as necessary for their “runway” to execute and recruit solid talent over the coming months. This would be a seed crowdfunding round with an A round to follow – perhaps next year. The seed round may come in around 20% equity – a solid amount of ownership to back the future of finance in Canada.

As part of their growth strategy, SeedUps wants to engage early stage investors like Angels – not supplant them.  The platform wants to collaborate with established early stage types – a phenomena that has growing traction globally. Sandi Gilbert, the CEO and co-founder of SeedUps, notes that in the last year or so traditional early stage investors like VCs and Angels have experienced a change of heart. They used to say “hey we don’t need these guys [equity crowdfunding platforms]” today they are recognizing this really makes sense.

The Canadian regulatory environment has proceeded in a bit of a convoluted fashion (not necessarily atypical – just look at the US). But last month, on May 14th, things changed in Canada as multiple provincial regulators moved in concert to improve the environment for access to capital.

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Gilbert provided some insight into their world;

“For the last 18 months, we’ve been educating Canadians on the merits of equity crowdfunding and raising capital for companies profiled on our platform. It’s a new world for early stage companies seeking capital, but it has taken a while to gain main stream adoption. On May 14th, everything changed, as six Canadian provinces endorsed equity crowdfunding by implementing rules that make it easier for early stage companies to raise capital and opening up the opportunity for the ordinary investor to participate alongside seasoned investors in private capital deals. And, there is more change coming when Ontario opens up its market later this year.”

With the enactment of new rules, SeedUps believes now is the time to seize the moment and move forward aggressively.  Gilbert states;

“We launched in 2014 and [have been] credited with the “First Ordinary Investor”, we believe that now is the time to raise capital to take advantage of developments in the marketplace. This is the first time SeedUps has reached out for external financing, but our peer group has been active globally.”

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