Online publishing house Market Jar Media Inc. announced the launch of SmallCapFunding.com, an equity crowdfunding portal that connects startup companies with investors in select Canadian provinces. The portal is focused on providing ordinary people with extraordinary opportunities by connecting seed-stage startup companies looking to raise additional capital with investors.
For investors in British Columbia, Saskatchewan, Manitoba, Ontario, Nova Scotia, New Brunswick, and Québec, equity crowdfunding platforms like SmallCapFunding provide them with an outlet to invest a minimum of $100 and a maximum of $1,500. Unlike traditional financing, crowdfunding is open to a broader set of people, not just accredited investors. Essentially, equity crowdfunding gives ordinary people access to the same lucrative investment opportunities as top traders.
“We are extremely excited to bring SmallCapFunding.com into the Canadian crowdfunding landscape,” said James Young, President and Director at SmallCapFunding. “I am stoked to be able to help both Small Businesses looking to grow and take their companies to the next level as well as everyday, ordinary people looking for an opportunity to invest. With our extensive online marketing experience, we are very confident that we will be able to help both groups.”
SmallCapFunding provides details about each investment opportunity, including the startup's name, a description of what it does, the amount of money the company is looking to raise, and the length of the crowdfunding campaign. The portal will also facilitate the payment of the purchase price from the investor to the issuer.
The goal of these companies vary, but they are typically related to bringing a product to market, listing on a securities exchange, or launching a business.
According to the British Columbia Securities Commission, if a company doesn’t raise the predetermined amount of money within 90 days, investors will receive their money back. In addition, investors have the right to withdraw their investment within 48 hours following their subscription.
SmallCapFunding has already signed one issuer, Standard Uranium, a Canadian uranium exploration company that is going public on the TSX Venture Exchange this fall. Standard Uranium has one of the largest highly prospective unexplored targets in the Patterson Lake Uranium District in the Southwest Athabasca Basin. What's more, the company is backed by an executive team that has extensive experience in exploration, corporate governance, junior mining finance, and capital markets. Want to learn more about Standard Uranium's offer? Please click here.
Equity Crowdfunding Regulations
Crowdfunding is a process through which a business or individual can raise small amounts of money from the general public, typically through the internet or social media. In Canada, all trading of securities is subject to legal obligations, such as filing a prospectus, which can be costly for early-stage companies and startups.
The securities regulators in British Columbia, Saskatchewan, Manitoba, Québec, New Brunswick, and Nova Scotia have made available exemptions to facilitate securities crowdfunding to make it easier for startups to raise money by issuing securities.
The startup crowdfunding exemptions allow startups and early-stage companies to raise small amounts of money by distributing securities (special warrants or common share) to investors without having to file a prospectus.
SmallCapFunding joins a handful of funding portals permitted to provide startup crowdfunding services in British Columbia and provides investors with the opportunity to invest in up-and-coming companies that are poised for growth.
Like most of the portals, SmallCapFunding is not registered under Canadian securities legislation and does not provide advice about the suitability or the merits of any investment offered by third-party crowdfunders.
Investors who are interested in gaining easy access to investment opportunities without being accredited may want to consider checking out SmallCapFunding.
Featured Image: SmallCapFunding