Saskatchewan Equity Crowdfunding
What is Equity Crowdfunding?
You may have heard of crowdfunding as a way for small businesses or creative projects to raise funds online from the public. Traditional crowdfunding usually raises money through donations or by pre-selling products.
Equity crowdfunding is slightly different.
Instead of giving a donation or pre-purchasing a product, individuals are buying a stake in a small business or start-up and businesses are selling securities like shares, limited partnership units and promissory notes.
Why do we need Equity Crowdfunding?
Before equity crowdfunding, the rules for selling securities like shares, limited partnership units and promissory notes were more expensive, complicated, and time consuming for small businesses or start-ups to use.
We believe the Saskatchewan Equity Crowdfunding Exemption will help small businesses and start-ups raise a defined amount of money in an efficient and cost effective way.
But we are still protecting investors because we’ve placed conditions on equity crowdfunding, including limiting the amount of money individuals can risk in a single investment. This should mitigate the risk to individual investors if the business is not successful.
Remember, all investments have risk but equity crowdfunding should be considered high risk.
How to Get Started with Equity Crowdfunding
Are you interested in starting an equity crowdfunding website?
Are you a business?
Are you an investor?