An increasingly hot investment strategy is now seeking to entrench itself in Toronto, with the real potential to cut out the middleman – ie, you.
Earlier this month the CEO of OurCrowd, the world’s largest equity crowdfunding platform appeared at the Canadian Crowdfunding Summit to discuss his company’s move to set up shop in Toronto and equity crowdfunding in general, both here and around the world.
Craig Asano is the executive director of the National Crowdfunding Association of Canada (NCFA) and the person to talk to about equity crowdfunding’s burgeoning growth in the Canadian marketplace.
Why should advisors consider this area of private capital markets?
“If I were an advisor [equity] crowdfunding’s just another tool you’re adding to your client’s possible investment opportunities,” says Asano.
Diversification for many is the key to successful investing; Asano makes it very clear that while it’s still early days when it comes to equity crowdfunding in Canada, it couldn’t hurt advisors dealing with the mass affluent or high-net-worth investors to keep abreast of the changing regulations and opportunities that will soon present themselves.
Almost all of the provinces, including Ontario, are working on exemption proposals that will allow for equity crowdfunding. Ontario’s proposal, according to Tech Vibes, would allow start-ups to raise a maximum of $1.5 million annually from non-accredited investors. Further details are expected in the summer.
#pb#
Whenever these rules become law, innovation in Ontario takes a big step forward because equity crowdfunding fills a gap in venture capital funding that’s currently underserved.
“This is augmenting and complimenting [crowdfunding in a client’s portfolio], that’s the message you need to get out… Who isn’t interested in tagging the next latest and greatest up-and-comer…? If it’s a great company and team, you’re going to want to get in on that.”
With the maximum proposed investment cap per investor per deal in Ontario set at $2,500 with a maximum of $10,000 for a rolling 12-month period for all equity crowdfunding issuers, the average high-net-worth client isn’t going to be overweight by any means.
As Asano reminds WP, it’s another arrow in an advisor’s quiver.
That’s a good thing.
Craig Asano is the executive director of the National Crowdfunding Association of Canada (NCFA) and the person to talk to about equity crowdfunding’s burgeoning growth in the Canadian marketplace.
Why should advisors consider this area of private capital markets?
“If I were an advisor [equity] crowdfunding’s just another tool you’re adding to your client’s possible investment opportunities,” says Asano.
Diversification for many is the key to successful investing; Asano makes it very clear that while it’s still early days when it comes to equity crowdfunding in Canada, it couldn’t hurt advisors dealing with the mass affluent or high-net-worth investors to keep abreast of the changing regulations and opportunities that will soon present themselves.
Almost all of the provinces, including Ontario, are working on exemption proposals that will allow for equity crowdfunding. Ontario’s proposal, according to Tech Vibes, would allow start-ups to raise a maximum of $1.5 million annually from non-accredited investors. Further details are expected in the summer.
#pb#
Whenever these rules become law, innovation in Ontario takes a big step forward because equity crowdfunding fills a gap in venture capital funding that’s currently underserved.
“This is augmenting and complimenting [crowdfunding in a client’s portfolio], that’s the message you need to get out… Who isn’t interested in tagging the next latest and greatest up-and-comer…? If it’s a great company and team, you’re going to want to get in on that.”
With the maximum proposed investment cap per investor per deal in Ontario set at $2,500 with a maximum of $10,000 for a rolling 12-month period for all equity crowdfunding issuers, the average high-net-worth client isn’t going to be overweight by any means.
As Asano reminds WP, it’s another arrow in an advisor’s quiver.
That’s a good thing.
