Market Jar Media Inc., an online publishing house, announced the launch of SmallCapFunding.com, an equity crowdfunding portal that connects startup and early-stage companies with investors in select Canadian provinces. SmallCapFunding was created to provide ordinary people with extraordinary opportunities by connecting seed-stage startups looking to raise additional capital with investors.
For investors in British Columbia, Saskatchewan, Nova Scotia, New Brunswick, Quebéc, Manitoba, and Ontario, equity crowdfunding platforms like SmallCapFunding give them an outlet to invest a minimum of $100 and up to $1,500. Unlike traditional financing, crowdfunding is not just for accredited investors. Essentially, equity crowdfunding gives ordinary people access to the same lucrative investment opportunities as the top 1% of traders.
“We are extremely excited to bring SmallCapFunding.com into the Canadian crowdfunding landscape,” said James Young, President and Director at SmallCapFunding. “I am excited to be able to help both small businesses looking to grow and take their companies to the next level as well as non-high net worth individuals 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 will provide the details of each investment opportunity, including the company’s name, a description of what it does, the amount of money the company is looking to raise, and the length of the campaign. The portal also facilitates the payment of the purchase price from investors to issuers.
The goal of startup companies using crowdfunding vary, but are usually related to launching a business, bringing a product to market, or listing on a securities exchange.
SmallCapFunding has already signed on Standard Uranium for an equity crowdfunding campaign. The Canadian uranium exploration company, which has one of the largest highly prospective unexplored targets in the Patterson Lake Uranium District in the Southwest Athabasca Basin, is going public on the TSX Venture Exchange this fall. Standard Uranium is backed by an executive team that has extensive experience in exploration, corporate governance, junior mining finance, and capital markets. If you’re interested in Standard Uranium’s offer please click here.
Canada’s Equity Crowdfunding Regulations
Crowdfunding is a process through which an individual or business can raise small amounts of money from a large pool of people 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 too costly for startups and early-stage companies.
The securities regulators in select provinces (British Columbia, Saskatchewan, Manitoba, Québec, New Brunswick, and Nova Scotia) have made available exemptions to facilitate securities crowdfunding, making it much easier for startups to raise money.
The startup crowdfunding exemptions allow startups and early-stage businesses to raise small amounts of capital by distributing securities (common shares or special warrants) to investors without having to file a prospectus.
SmallCapFunding joins a small group of funding portals permitted in British Columbia to provide startup crowdfunding services. The platform gives investors the opportunity to invest in up-and-coming companies that are poised for growth.
Like a majority of the portals, SmallCapFunding is not registered under Canadian securities legislation and doesn’t provide advice about the merits or the suitability of any investment offered by third-party crowdfunding companies.
According to the BC Securities Commission, if a company doesn’t raise money within 90 days, investors will receive all of their money back. In addition, investors have the option to withdraw their investment within 48 hours of their subscription.
Investors interested in gaining access to investment opportunities without being accredited should consider checking out SmallCapFunding. Of course, with any investment, it is important to educate yourself on the company of interest and understand the risks associated with your investment.
Featured Image: SmallCapFunding
