Ontario Securities Commission crowdfunding

Ontario Securities Commission Proposes Equity Crowdfunding Rule

Ottawa Business Journal, OBJ Staff Published on March 20, 2014

The Ontario Securities Commission has announced a number of new rules it hopes will make it easier for small and medium-sized businesses, along with new startups, to raise capital.

The OSC is proposing four new ways for businesses to sell securities without a prospectus – a detailed legal document intended to inform potential investors about a company and its finances.

The new rules are subject to a 90-day public consultation period and could be changed before they come into force.

The proposed rules include an exemption for crowdfunding that would allow businesses to raise up to $1.5 million through approved equity crowdfunding portals.

The system would work in a similar way to existing crowdfunding sites like Kickstater and Indiegogo but would give investors – who could invest up to $2, 500 in an individual venture – equity in the company. The OSC would regulate equity crowdfunding portals.

Also proposed are new rules that would allow companies to issue securities through an offering memorandum, rather than a prospectus. That exemption already exists in every other province.

An offering memorandum requires less detail and can be obtained sooner after a company launches but still requires details like audited financial information.

Also on the table is “a family, friends and business associates exemption, ” which would allow businesses to sell securities to people the owners know well. That would also bring Ontario rules in line with those in other provinces.

The other exemption would allow companies that are already traded on the Toronto Stock Exchange, the TSX Venture Exchange and the Canadian Securities Exchange to issue some new securities without requiring a new prospectus.

“Today we have proposed new tools, which will transform Ontario’s exempt market by providing greater access to capital for businesses and expanding investment opportunities for investors, ” said Howard Wetston, chair and CEO of the OSC, in a press release.

“We have done so in a balanced and responsible manner that is intended to facilitate capital raising while maintaining an appropriate level of investor protection. We look forward to receiving input on these proposals, which are tailored to address the needs of Ontario’s capital markets.”

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Thought on Equity Crowdfunding in the US?

by Crowdfunding-Sites

Hey All,
Curious on your thoughts on Crowdfunding; nonprofit, individual and Equity crowdfunding.
Have you ever run a crowdfunding project?
Was it successful?
How/Did you promote the project outside of the Crowdfunding Platform you utilized?
Doing some additional research for
to figure out if we should stick to reviewing crowdfunding platform and support services or branch in to promoting crowdfunding projects

Social Seam aims to help nonprofits raise funds with Groupon-like component  — Boston Business Journal
Baguio, a 34-year-old Jamaica Plain resident, says Social Seam isn't just a platform for nonprofit crowdfunding. It also gets businesses involved by allowing them to offer rewards to users who donate to their favorite nonprofits.

4 Elements of Successful Crowdfunding Drawn from Digital Marketing  — The Nonprofit Quarterly
“As part of your nonprofit crowdfunding campaign, you can identify social media influencers with large engaged audiences, journalists who report in your area, and community leaders who care about your cause.

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