Canada: Crowdfunding to get regulatory green light

Posted Mar 21, 2014 by Gene Kosowan
An online revenue stream often used by artists and filmmakers is set to be approved in several Canadian provinces for business startups.
Reuters reported on Thursday that the Ontario Securities Commission is drafting up crowdfunding rules that involve equity stakes in capital projects. According to The Globe and Mail, similar regulatory bodies in Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Quebec and Saskatchewan are also proposing similar measures.
"Today we have proposed new tools, which will transform Ontario's exempt market by providing greater access to capital for businesses and expanding investment opportunities for investors," said OSC Chairman Howard Wetston, chairman of the OSC, which will allow for online crowdsourcing sites to receive up to $2,500 Cdn per person per endeavor.
One major beneficiary of these regulatory approvals will likely be the technology sector, which has frequently had to find investment outside of Canada. But said the founder of one Calgary-based online firm that links investors with businesses, the new rules are encouraging.
“We’ve been pushing for two years for crowdfunding regulation, so I’m very happy they are allowing small companies to raise capital in an economic way,” said Sandi Gilbert, creator of SeedUps Canada, to the Financial Post.