Equity Crowdfunding

Equity crowdfunding is the new sister to crowdfunding solution for donation and rewards. Equity crowdfunding allows companies to raise money and grow their business by selling securities in their company to investors. These companies might sell stock or sell debt, but either way, they are asking investors to provide money to help them grow their company and providing in exchange an investment return.

Instead of giving a donation or pre-purchasing a product, individuals are buying a stake in a growth business or start-up in exchange for securities such as shares, limited partnership units or debt securities (promissory notes, bonds, debentures).

You have seen Dragon’s Den and Shark Tank, now you too have a chance to back the next great idea.

What is Different?

Before equity crowdfunding, the rules for selling securities were more complicated, expensive, and time consuming for small businesses or start-ups. Now for the first time in 100 years, companies looking for money can advertise they are raising money including using modern familiar tools such as social media to reach investors.

Further, any Canadian living in a participating jurisdiction can invest. It is no longer a class of investing only for the rich, now everyone can participate.

Equity Crowdfunding is only legal through Portals like AltSX. Issuers list their companies campaigns on the Portal and Investors invest through the Portal. The Portal is a marketplace for investors and Issuers to meet and conduct transactions.

But it is also more than just a transaction service. Portal’s and Equity Crowdfunding represent a whole new approach to investor relations and should dramatically improve transparency and information flow.

Equity crowdfunding will help

We would love to have you investing in the issuing companies on our portal. Investing in early stage companies should be considered high risk. In each investment the Issuer will identify the key risks and the portal will insist you review a risk check-list.

Our Role & Approach

We seek to fund the innovation economy by helping Canadian’s to invest in their local economy across the nation. We want Canadian companies to have the opportunity to succeed. Our role as a portal is to act as a conduit; to present investments that not only we think you would like to see but to make sure the opportunity being shared is complete and normalized in its information so that it is easier to evaluate.

We will review the Issuer investment information that they listed on our portal. We will insist that the companies seeking investment disclose specifics around their governance practices and other disclosures to help you better understand the risk.

Our plan is to have companies raise money and let the crowd of investors decide which companies to invest in. Thus our approach does not include conducting a rigorous due diligence of each Issuer.

Overview

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