Vancouver’s Guusto first Canadian company to close round of equity crowdfunding

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Business in Vancouver | By | Sep 18, 2015

Joe FaccioloWhile crowdfunding campaigns have gained attention for raising millions for films, video games and even potato salads, they’ve all be predicated on donations. 

While crowdfunding campaigns have gained attention for raising millions for films, video games and even potato salads, they’ve all be predicated on donations.

But on Friday (September 18), Vancouver-based startup Guusto became the first Canadian company to close a round of financing through equity crowdfunding.

The company wasn’t looking for donations but instead raised about $44,000 by selling shares.

Guusto has developed an app allowing people to gift restaurant food and drinks to others and co-founder Joe Facciolo said he saw equity crowdfunding as an opportunity to take investment from customers — people who were already loyal to the brand and believed in what they were doing.

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“The pool of resources in Canada from angel investors is pretty limited, so we believe that this mechanism helps to deepen this pool,” he said.

Prior to May, the B.C. Securities Commission required shares could only be sold by those registered to do so.

But new exemptions adopted by B.C., Saskatchewan, Manitoba, Quebec, New Brunswick and Nova Scotia now allow companies to sell shares through an approved funding portal.

Guusto kept the equity crowdfunding a local affair by linking up with Vancouver-based FrontFundr to serve as the funding portal.

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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 1100+ 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 www.ncfacanada.org.

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