It’s so often the case these days that startup businesses just don’t know where to turn for money. Venture capital can be hard to find, institutions aren’t likely to take the risk of lending to a new firm in an emerging industry, and the contributions of friend and family only go so far. Could crowdfunding be the answer?
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Crowdfunding is a fundraising method that allows a large number of people to kick in a small amount of money to help a startup bring its product or service to market. Web sites like Kickstarter and Indiegogo use the model, allowing U.S. businesses and artists to sell promise paying supporters future products and services. But securities law in Canada’s provinces and territories bars this type of investment.
The Canadian Advanced Technology Alliance (CATA) is organizing a cross-Canada campaign to see crowdfunding legalized. It’s written an open letter to the Minister of Industry and has been collecting signatures to an online petition that has reached 450 names to date. The push to reform has gained the most traction in Ontario and New Brunwick so far.
Now Sherwood Neiss, the chief advocate of Startup Exemption, and the architect of the crowdfunding framework that was signed into law by President Obama with the JOBS Act, is turning his efforts to north of the border. Join ITBusiness.ca for a live Web cast and live blog coverage of Startup Grind’s fireside chat with Neiss. Our online audience will get a chance to ask Neiss questions that you will see answered live.