Gerard Buckley, Jaguar Capital Inc. Ontario
Crowd funding is one example among many of how the internet is being used to solicit
investments by companies. There are two issues at play:
1. the cost to start a company has decreased significantly in the last number of years and
Other websites besides Kickstarter would be Angellist, The Funded, and Gust, all of which
are in the space of matching investors and companies within and across the jurisdictions of
regulators. None of this negates the current responsibility of a company to ensure that the
investors that invest in their company without a prospectus are actually qualified accredited
investors. I would suggest the idea of setting a maximum crowdfunding limit per individual
investor is something that warrants discussion.
Steve Rosen, PTC Accounting & Finance Inc. Ontario
I think that it would be narrow minded to totally ignore this source of funding.
Start-up funding is already more challenging in Canada than many other
jurisdictions, and we need to support this vital part of the economy. At the same
time, Canada would likely err on the side of investor protection, which is also good.
I would advocate for a small, controlled test, with all the limitations that others have
raised - limits on how much can be raised, how much a single investor can put
in any one start up, etc. There could also potentially be some self-education and
disclosure requirements which can be delivered via the web. For example, the need
to answer a fairly basic multiple-choice quiz on a startup, using data that would be
available via the prospectus/presentations on the website, before being approved to
invest. Start small, but start something, and gain experience.
Marty Gunderson, Gunderson and Associates, Alberta
Don’t you think the exempt market can morph into the platform to fund start-ups?
In Alberta, anyone can invest up to 10K, as long as there is an offering memorandum.
Perhaps the challenge is to get other jurisdictions to follow along. I believe it is vital for
Canada to diversify it’s economic might from being largely natural resources based.
One way to do so is to encourage our “entrepreneurs in waiting” and using our “natural
These start ups require funds and unfortunately Canada is lagging behind other regions in
funding venture capital. I strongly believe the exempt market can and should evolve into a
properly regulated crowd sourcing platform. Some ideas that could be considered are:
• Create an exemption which would allow anyone to invest into an
offering up to an amount ($5-10K) without the OM requirement
• Investors should always be required to sign Risk Acknowledgment form
• A KYC requirement would be waived
• All deals still be required to go through an EMD and registered
with the appropriate securities commissions