9 Canadian provinces have proposed exemption to allow equity crowdfunding in Canada. Find out which provinces and how are the exemptions different. To find more, visit here.

Equity Canada (2)

The next step up the escalator on corporate Canada’s meaningful ascent along it is an exemption aimed at small companies in the early part of their lives.

The so-called “startup exemption” — one among several under consideration by provincial regulators charged with defining crowdfunding legislation in this country — is designed to help operations that don’t have a lot of capital requirements, but who need a financial jolt to get them to the next stage.

startupsignThis exemption, already in place in Saskatchewan, is part of the plan proposed by provincial regulators in late March that would allow crowdfunding to take place in a more cost-effective and regulated environment. Under it, small and early-stage companies would be freed from a regime that many consider too expensive relative to the amount of capital they’re seeking.

Here, organizations would be allowed to raise up to $150,000 twice a year by issuing securities to non-accredited investors without having to present a prospectus — provided they meet certain conditions.

This development would reduce some of the hurdles companies would otherwise have to navigate, and the attendant expenses associated therewith. Money raised via the startup exemption would not require audited financial statements. And there would be no need to involve lawyers to draft massive documents on startups’ behalf, given that they can undertake the stripped-down application process themselves. The point, of course, is if you’re raising $150,000 and have to spend $50,000 of it on legal fees, well, you’re defeating the effort.

Moreover, the portals that facilitate the deals would be released from the burden of performing a vast quantity of due diligence on the startup. The portal needs only present the deal for consideration, has no call to provide investment advice and is not held liable if something goes wrong.

The various provincial regulators are seeking comments on this and other proposed crowdfunding exemptions until June 18.

You can register your interest today and be among the first to participate in securities crowdfunding for your business, or as an investor in someone else’s, via the equity crowdfunding available through FundRazr.

Introducing The Fundees Awards – 2 Grand Prizes worth $10,000 + More

Montreal/Vancouver: Two of Canada’s most successful funding platforms, Fundica and FundRazr, have teamed up to add an exciting crowdfunding layer to the 2014 Funding Roadshow. The Fundees Crowdfunding Competition, powered by FundRazr, will be unveiled at the Toronto and Guelph Funding Roadshow events on April 9th and 11th, respectively. Visit www.FundingRoadshow.com/Fundrazr for more details.

A Grand Prize package worth $10,000 awaits 2 Canadian startups that tap the crowd most successfully in either the Keep-it-All or All-or-Nothing streams. Startups across Canada (excluding Quebec) will strut their stuff during the 7-week “competition period” running from May 5th – June 23rd, 2014. Campaigns can be created and updated starting April 9th until the end of the competition period. The leaderboard will go live on May 5th and campaigns can be launched publicly on that date. All competitors will also access valuable incentives detailed below.

Funding Roadshow_FundRazr_Fundees

“Crowdfunding is a proven and powerful new way for entrepreneurs to build community, get market feedback and raise alternative financing,” said FundRazr CEO Daryl Hatton. “We are pleased to launch The Fundees competition to celebrate more entrepreneurs raising capital as funders and backers conveniently access the campaign stories and perks online.”

The Grand Prize includes: a Future Equity Crowdfunding campaign on the FundRazr platform with FundRazr fees waived (valued at $5,000+), a Startup Marketing package courtesy CrowdClan (valued at $2500), a Winner Promotional package including profile video courtesy FundRazr (valued at $2,500) and the coveted first ever Fundees Award representing market validation by the Crowd. Best of all, competitors keep the funds raised during the campaign.

“We are excited to enable more entrepreneurs, even outside the 10 cities we visit, to access complementary funders via this crowdfunding competition,” stated Fundica CEO Mike Lee. “The proven FundRazr technology will enable campaign set-up and related tools to help campaigns succeed right on the FundingRoadshow.com website.”

All eligible competitors that launch campaigns will also qualify for two great incentives. CANARIE is offering one year of DAIR cloud infrastructure services worth more than $2,000. DAIR provides entrepreneurs with high performance, made-in-Canada cloud resources for development, testing and demonstration of new products and services utilizing advanced computing and network technologies.

Competitors will also be eligible to receive an exclusive invitation to Canada’s first Equity Crowdfunding cohort courtesy of FundRazr. The cohort will be among the first startups to have the opportunity to raise capital under the new Canadian crowdfunding exemptions. The will receive beta access, coaching, event and networking opportunities.

“We’ve extended the competition period to allow entrepreneurs in cities whose Funding Roadshow events do not occur until May to better participate,” stated FundRazr CMO Bret Conkin. He added, “The competitors will gain valuable crowdfunding and social media experience and have fun along the way. However, unlike The Dundies Awards on the TV show The Office, not everyone will get a Fundees Award.”

Crowdfunding Workshops will be held at several Funding Roadshow events including the Toronto and Guelph stops, as well as via online webinars (webinar dates to be announced shortly). These sessions will share best practices as well as insights on the future of crowdfunding in Canada. Attendees can learn more about The Fundees Competition and alternative financing.

About FundRazr

FundRazr is Canada’s most successful crowdfunding platform with $45M raised in over 20 countries over 40,000 campaigns that span entrepreneurial, personal and charitable projects and causes. FundRazr offers a suite of Business Crowdfunding Solutions including Donations, Rewards and Pre-order with Equity solutions planned for Fall 2014. Crowdfunding-as-a-Service technology (CFaaST) was launched in 2013 to enable businesses to offer crowdfunding to their community – Powered by FundRazr. Recent FundRazr awards include 2013 BCTIA Most Promising Startup and the Profit Magazine Hot 50. For more information, visit business.fundrazr.com.

About Fundica

Fundica, Canada’s most successful traditional funding identification and connection platform, matches entrepreneurs, private investors, public funders and advisors. Through unique crowdsourcing/crawler technology, Fundica provides an up-to-date, comprehensive and intuitive platform. Additionally, Fundica manages the Funding Roadshow, an annual cross-Canada event. In 2013, Fundica earned a Bronfman Foundation Top 25 Emerging Entrepreneurs Award and was named an Intuit Financial Literacy Startup Finalist. For more information, visit fundica.com

For more information:

Bret Conkin, CMO
bret@fundrazr.com

Lana Tayara
ltayara@fundica.com
855.386.3422, ext. 123

Friends, Family, Associates Exemption Holds Promise

by Laura Pratt 3 April 2014

It’s a time of upheaval and adjustment in the land of crowdfunding, meaning vigilance and attention to detail are called for if your average soul harbours any hopes of staying on top of an increasingly complicated subject. Take, for instance, the business of the exemptions recently proposed by the Ontario Securities Commission regarding capital raised […]

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Heartbreaking Film “Our Father” Funded On The Crowdfunder Show

by Tatyana Kapkan 2 April 2014

“One life is all we have and we live it as we believe in living it. But to sacrifice what you are and to live without belief, that is a fate more terrible than dying.” – Joan of Arc. Linda Palmer wrote a heartbreaking personal story about secrets of her estranged father who left the […]

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Tragedy at SXSW: Jamie and Evan West

by Tatyana Kapkan 28 March 2014

The South by Southwest festival draws thousands to enjoy the music, film and interactive conference each year in Austin, Texas. Austin’s downtown streets fill with people moving between bars in order to listen to bands and artists performance. This year a terrible tragedy occurred on March 13th, when a drunk 21-year-old driver was trying to […]

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Provinces Take Steps With Crowdfunding Regulation Proposals

by Laura Pratt 28 March 2014

The first day of spring this year bloomed in the company of a miscellany of new regulations governing the crowdfunding frontier. While it would be significantly more convenient if Canada acted as a uniform entity in its oversight of this still Wild West-like landscape, the provinces insist on unique approaches. Here’s an overview: • In […]

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How To Get Your Crowdfunding Campaign News Coverage

by Tatyana Kapkan 27 March 2014

Campaigns that receive news coverage (online and offline) raise 2 to 3 times more than campaigns that don’t. Examples of campaigns that had news coverage include the Matt Scarff campaign (which raised a whopping $107,000), Aid for Orly (coming in at $70,000) and the Help Mama Jade campaign (brought in over $28,000). All of these […]

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Rob Knight at TED2014: Microbes in Your Gut Define You as Much as Your Genes

by Tatyana Kapkan 21 March 2014

At TED 2014 in Vancouver, microbial ecologist Rob Knight talked about the ecosystem of microbes within our bodies, and it’s potential for causing or curing diseases. Rob Knight and his team have launched the American Gut, the world’s largest open-source science project to understand the microbial diversity of human gut. It’s one of the most […]

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SEC Stalls on Crowdfunding Access

by Laura Pratt 19 March 2014

As dead simple and progressive as the concept of crowdfunding might be, and as patently obvious a boon to the struggling-for-funding small business contingent it might seem, there are still flies in the regulatory ointment. Specifically, those bugs reside in the final phase of the Jumpstart Our Business Startups (JOBS) Act, a 2012 law designed […]

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