Effective May 5,2015 Canadian Securities Regulators have added another burden on companies raising capital from Accredited (i.e. Angel) Investors. Instead of just relying on the honesty of the investor, companies must “take steps” to ensure that the investor is not lying.
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This blog contains the latest developments in Equity Crowdfunding.
Many exits happen at much lower than expected values. Even a three or four fold increase in company valuation may not produce positive returns for the early risk-taking investors. Angel investors and first-round investors are taking it on the chin all too often. Here’s how to stop it.
Just a day after I wrote about Crowdfunding becoming the new VSE, the BC Securities Commission issued a notice requesting comment on the idea of a new crowdfunding exemption that would allow companies to raise a small amount of capital (max $150K) from investors in small amounts (max $1500).
The more I think about equity crowdfunding the more I believe that this is going to be the new VSE (Vancouver Stock Exchange). It’s almost inevitable when you stop and think about it. Doesn’t “crowd” mean “public”? So why is crowdfunding any different?
Equity Crowfunding – the selling of shares in new ventures to the general public – can give entrepreneurs access to a vast resource of new capital. While this will stimulate the creation of more companies and jobs, not everyone thinks that this is a good idea. Securities regulators are worried about investors losing out due […]
Thinking about starting a business? Why? Can you explain what the business opportunity is and how you will make money? I hear hundreds of pitches every year from budding entrepreneurs. Their main challenge is making the business case.
Securities regulations severely limit access to capital for start-up ventures. The average citizen is precluded from investing because of these regulations. The government’s goal of protecting investors is achieved by preventing them from investing! What can be done to give companies better access to capital and better protect investors?
This week, I made my annual pilgrimage to the 2012 International Consumer Electronics Show & Conference in Las Vegas (CES) – an annual event that I’ve been coming to for many years (actually, I came to the first COMDEX in 1979 as an exhibitor and when it disappeared in 2003, I started attended the CES […]
What’s my baby worth? Figuring that out is the biggest challenge entrepreneurs face when attracting investors. Many negotiations break down over this issue. The good news is that there are contractual mechanisms that can be used to resolve any disparities.