Todd

Will Equity Crowdfunding Be Too Expensive?

The Cost of EquityThere has been some debate amongst the North American investment community about whether the legalization of equity crowdfunding would unleash a new wave of clever fraudsters on an unsuspecting public. Recently, the Ontario Securities Commission (OSC) published newly proposed exemptions to become available to certain investors, including a proposed crowdfunding exemption. The proposed framework, which is likely to become law after a 90 day consultation period, seeks to strike a balance between protecting the public and embracing the inevitable investment paradigm shift to crowdfunding. The OSC has found a convenient middleman on which to place the burden of ensuring that offerings are in fact Continue reading

Share Button
Shareholder Communication

Post Crowdfunding Communication – What Shareholders Need To Know!

Equity crowdfunding to mainstreet will result in a new challenge for private companies, namely effective shareholder relations.  Admittedly, crowdfunded privately held companies will not bear the same continuous disclosure burden as is imposed on publicly traded corporations. However, a larger constituent of arm’s length investors will inevitably make greater demands for information on management than was otherwise the case with such closely-held companies. So as part of the crowdfunding preparations, management would be wise to consider how to effectively communicate with an onslaught of new investors.

Continue reading

Share Button

Why Should the Lawyers Always Win?

Crowdfunding statistics are eye-popping. In less than 5 years, Kickstarter raised more than $1 Billion in pledges from more than 5 million contributors; that’s just one portal of over 600 portals worldwide! As an industry, crowdfunding has grown 1000% in 5 years and is predicted to grow 92% in 2014. But those numbers are primarily comprised of rewards-based crowdfunding models. 

So how does equity crowdfunding fit in?

Continue reading
Share Button
css.php