For as little as $500, you could buy a percentage of a Vancouver-based company, thanks to new legislation passed just last month.
On May 14, six Canadian provinces, including B.C., announced they would allow newer companies to raise up to $250,000 per capital raise twice a year using a crowdfunding portal.
FrontFundr, a registered exempt market dealer firm, will be the first organization to utilize the new legislation, and Guusto, a Vancouver-based gift-giving platform, will be the first company to take advantage of the funding method.
“Access to capital is extremely scarce for start-‐up companies in Canada”, said Joe Facciolo, co-founder of Guusto, in a press release. “These new regulations significantly enlarge the available investment pool and bring excited investors into the mix that previously didn’t qualify. We’re equally excited for the opportunity to raise funds from regular Canadians who genuinely believe in our product and want to share in this journey.”
The new legislation gives every day citizens the opportunity to try their hands at investment. Normally, the process of accessing networks of small investor groups requires time and money. Crowd financing platforms like FrontFundr look to bridge the gap.
“We’re giving regular people a chance to sit in the pitch seat and be an ancillary dragon choosing which investments they want to make,” said Peter-Paul Van Hoeken, CEO at FrontFundr. “We’re providing ordinary people with access to carefully screened investment opportunities, and entrepreneurs with access to more capital to support their growth.”
To learn more about Guusto and see how you can get involved, go to www.guusto.com