There are three areas of investor disclosure that we care the most about, that we will review your investor documents to assure you have disclosures covering each:
This oversight is typically administered by a Board of Directors. Most often the founders of a company are on the Board. To fund raise on our portal, you need to consider having a director that is independent of the founders. You should choose someone with wisdom in years and experience; someone the crowd will respect.
If you have built previous companies and successful sold at least one and prefer a lean Board, we are willing to let the crowd decide whther you should be trusted. If this is your first time, you need some oversight.
Longer term or for more mature companies, you should consider a governance structure where you have more independent directors than directors that are also part of management. This is a vastly superior governance model than just the founders.
Board members are valuable resources and should be recruited and coveted like customers. You should absolutely consider diversity as strategy for assembling a Board; consider the different people from different backgrounds bring different perspective. Nothing can be more valuable.
Regardless of choice, the governance model needs to be detailed in every investment briefing document. Specifically, who is on the Board, what committees exist and who chairs each committee.
What we will expect is that the chosen structure be disclosed in each investor document.
Seedfundr is a team of veteran financing and technology professionals dedicated to the creation of a new efficient capital market. We want to help grow Canada’s Innovation Economy.
Our purpose is to help grow each local economy in Canada. Our approach is to engage an Seedfundr owner operator team in each local economy to grow a community using our Portal. Our Portal team are experts at what they do, but your community understands its needs, its focus and its opportunities. We are simply here to help build that community.
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).