Investment crowdfunding, or crowd-sourced funding (CSF) as it is called down under, generated $72 million in online capital formation, according to an industry report.
Lynn Johannson, Advisor, Sustainability and ESG
January 4th, 2024
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Search Results for: equity crowdfunding
State of UK Equity Crowdfunding Entering 2025
Report | Jan 30, 2025
Image: State of UK Equity Crowdfunding (Beauhurst)
UK Equity Crowdfunding Remains Vital for Startups Despite Recent Decline
According to the latest Beauhurst post on "State of Equity Crowdfunding in the UK", £324 million was raised in 2024, tracking a notable decline from its peak of £773 million in 2021. The total number of crowdfunding rounds also dropped to 297 last year, the lowest on record since 2014. Despite these challenges, investment crowdfunding is still an essential funding source for startups, and new innovations are arriving to adapt to this reality and change investor behaviours.
See: Top 25 Crowdfunding Podcasts
Capital Raised Over the Last 10 Years
It's been over a decade since the crowdfunding sector hit markets to provide both companies and investors with access and opportunity to invest in private companies via regulated platforms like Crowdcube and Seedrs. The chart below shows the last decade in equity crowdfunding investment volumes:
- 2014-2018 - the number of rounds and total capital grew year over year reaching over £500 million annually by 2018.
- 2019-2021 - capital volume in 2021 with a record £773 million raised across 569 rounds.
- 2022-2024 - then the trend declined with a total of £324 million in capital being raised in 2024, likely as a result of regulatory tightening, and impact of brexit and covid
Why the decline?
Arguably, several factors have contributed to the downturn in UK equity crowdfunding, such as:
- Economic Uncertainty - Brexit has made investors more cautious. The uncertainty around trade, market regulations, and currency fluctuations has adversely affected the willingness of individuals to invest in riskier early stage ventures.
- Stricter Regulations - In 2018, the FCA proposed tighter rules for lending based crowdfunding platforms, requiring more investor protections, risk disclosures, and due diligence. These rules became effective in December 2019. While the new peer to peer lending rules were designed to protect investors, it also made it more difficult for businesses to attract funding,
Comparing UK ECF with VC
- Median funding round size in 2024 was £500k for equity crowdfunding vs £1.72 million for venture capital
- ECF investors include retail and angels vs institutional investors and high net work individuals for VC
- Equity crowdfunding is being being used by seed and early stage companies vs growth/scale-ups using VC (although this may change longer term)
- Many companies are not eligible or far enough along for VC backing. Equity crowdfunding is still a critical source of funding for early stage.
New Innovations and Incentives in UK Crowdfunding
New incentives and innovations are emerging to help rejuvenate the sector.
See: Public Market Challenges and Equity Crowdfunding Capital
1. Regulatory Adjustments for Easier Fundraising
The Financial Conduct Authority (FCA) approved changes last year after consulting on the new Public Offers and Admissions to Trading Regulations regime (POATRs) aimed at making it easier for companies to raise funds to be implemented by H1 2025. One key change is increasing the threshold for issuing prospectuses in secondary fundraisings from 20% to 75% of a company’s issued share capital. Before, if a company wanted to issue new shares and raise funds from investors, they had to provide a detailed legal prospectus if they were selling more than 20% of their existing shares. Now, that threshold has been raised to 75% so fewer companies will need to go through the costly and time consuming process. This change will help growing businesses to attract more investment more efficiently, helping them scale. Also see new regime for public offer platforms.
2. Growth of Secondary Markets
Investors are increasingly gaining access to more liquidity and deals on secondary markets. Platforms such as Crowdcube and Republic Europe now facilitate secondary sales, which allows early investors to sell (some of) their equity before a company reaches an IPO or acquisition. This change is aimed at addressing the lack of liquidity, one of the biggest challenges in equity crowdfunding markets.
3. Crowdfunding as a Strategic Scale-up Expansion Tool
Some types of established companies use equity crowdfunding for not just capital but also as a way to engage their customers. For example, Gocycle used equity crowdfunding to introduce its new range of e-bikes to secure investment and strengthen brand loyalty at the same time.
UK Equity Crowdfunding Example Raises in 2024
1. Sunswap raised £17.3 million (Developing zero emission transport refrigeration systems)
2. Plum raised £2.7 million then raised £16 million series B shortly after (Fintech platform helping users automate saving and investments)
See: Revolut’s Crowdfunding Success from Start-up to $45 Billion
3. MishiPay raised £3.3 million (Retail payment solution, scan and pay via mobile devices)
4. WatchHouse raised £7.17 million (High-end coffee chain expanding across London)
What Lies Ahead for UK Crowdfunding?
The UK equity crowdfunding sector is in a period of transition. Even though capital and deal volumes have declined in recent years, new regulatory changes and evolving incentives offer potential for renewed growth. The FCA’s changes to fundraising rules, the rise of secondary markets, and the strategic use of crowdfunding by more established companies could reinvigorate investor interest.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Public Market Challenges and Equity Crowdfunding Capital
Capital | Sep 3, 2024
Image: Freepik/sentavio
As Canadian public markets face continued challenges, equity crowdfunding is transforming how companies raise capital
A gloomy outlook is on the table for Canadian public markets who are facing a decline in initial public offerings (IPO) activity, a reduction in liquidity, and valuation gaps when compared with U.S. public markets. Unless Canadian public markets improve their attractiveness and regulation streamlines the IPO listing process making it easier/cheaper to list, or the government introduces investor tax incentives (not the other way around), businesses are remaining private for longer. One impact of this that equity crowdfunding is fuelling innovation and growth and quickly becoming a viable and sustainable alternative, offering both companies and individual investors a fresh way to engage in new ventures, new products, and scale-up expansion.
Canadian Public Market Challenges
1. Wasteland of IPO Activity
With hundreds of firms going public annually, the Toronto Stock Exchange (TSX) and the TSX Venture Exchange (TSXV) were historically rich with new listings. However, currently we're experiencing one of the worst slowdowns in recent memory, without an IPO on the TSX in more over 18 months. Just 7 IPOs were listed on the TSXV in 2023, compared to 180 in 2007. During the pandemic (2020–2021), there was a temporary spike in tech IPOs with 20 companies going public but due to the industry's volatility over 50% of these companies have delisted, went private or were bought out.
2. Reduced Market Liquidity
As the number of listed companies drops, liquidity is a growing concern. Since 2008 the total number of operating companies listed on the TSX has decreased by 40%. Further the S&P/TSX Venture Composite Index (for smaller companies), is down 83% from its 2007 peak. Trading volumes have also hit 20 year lows, making it difficult for investors to trade without affecting stock prices.
3. Valuation Gaps and Capital Flight
Generally, it's considered very difficult for Canadian listed companies to get the same valuations to be inline with American competitors. For example, the S&P 500 is trading at a multiple of 21 times earnings (for every dollar earned by the company, investors will pay $21), whereas the S&P/TSX Composite Index is trading at around 14 times projected earnings. As a result of this valuation gap, companies are deterred from listing in Canada, since it's difficult to obtain those lofty valuations.
See: CCA Launch Crowdfunding Genome and Ecosystem Report 2024
To add salt to the wound, Canadian pension funds have reduced their exposure to Canadian domestic equities. Recent research from CD Howe reports, Canadian pension funds currently allocate only 4% of their assets to Canadian stocks, down from 28% in 2000. That translates into a withdrawal of $1 trillion of capital flight from the Canadian market (not chump change).
Equity Crowdfunding As A Viable Alternative
As public markets face challenges, equity crowdfunding has become a competitive alternative to traditional methods of capital raising allowing a wider range of investors to interact with a wider range of private companies. Here are just a select few examples of how investment crowdfunding is making a difference.
1. Growth and Scale-Up Capital: Knightscope
- Platform: StartEngine, US
- Amount Raised: $21.86 million
- Knightscope, an autonomous security robot startup, raised more than $21 million in its most recent equity crowdfunding investment. Prior to that the company raised $43.5 million via several crowdfunding campaigns. The latest funding has enabled the firm to expand its activities which has more than tripling its worth to $447 million. Knightscope's success with equity crowdfunding highlights how firms can use this financing tool to accelerate expansion.
2. Route to IPO: Vibe Bioscience
- Platform: FrontFundr, Canada
- Amount Raised: CAD $1.5 million
- Vibe Bioscience, a Vancouver-based cannabis firm, raised CAD $1.5 million through equity crowdfunding on FrontFundr. The money were utilized to grow operations and prepare for a future public listing on the Canadian Securities Exchange (CSE). Vibe Bioscience's successful crowdfunding round provided essential capital for development and also connected with a community of investors who supported the company's quest to become publicly listed.
3. Product Expansion: Nuudii System
- Platform: Republic, US
- Amount Raised: $300,000+
- Nuudii System successfully raised over $300,000 from its crowdfunding round and used the capital to invest in marketing. This led to a viral campaign on TikTok, driving $2.6 million in sales in 2023. This example shows how equity crowdfunding can be used to launch and market new products, reaching a global audience.
4. Launching a Fintech Venture: Nesto
- Platform: FrontFundr, Canada
- Amount Raised: CAD $500,000+
- Nesto, a Montreal-based fintech startup that specializes in online mortgage services, raised more than CAD $500,000 through equity crowdfunding. The money was used to broaden their product offerings and improve their tech platform. Nesto's investment enabled rapid growth in the fintech industry, resulting in an innovative and user-friendly mortgage platform for Canadians.
5. Growth and Expansion: Revolut
- Platform: Seedrs, UK
- Amount Raised: £1 million
- Revolut, a London-based global financial powerhouse, raised £1 million through Seedrs' equity crowdfunding platform amidst an investor frenzy. The funds were used to enhance the company's banking app and global operations. Revolut is currently valued at more than $45 billion, making it one of the world's most successful fintech businesses. This example demonstrates how equity crowdfunding can help a firm expand globally.
A Pipeline to IPO
The potential of equity crowdfunding to act as a springboard for an IPO is one of its main advantages. Equity crowdfunding provided companies like Vibe Bioscience the money and network of investors they needed to build their company before going public. A successful IPO depends on a company's ability to strengthen its offerings, hone its market approach, and increase brand awareness which equity crowdfunding delivers in spades (ticks all of these boxes).
See: Corporate Venture Capital in Canada: Insights and Challenges
Imagine if equity crowdfunding markets received greater support from more dealer/brokers, advisors, government and innovation folks in venture. It would help fill an IPO pipeline by helping companies strengthen their offerings prior to hitting the big leagues, thereby establishing a steady stream of more qualified companies ready to list and move to the next step. Now it's worth noting that not all companies are destined to go public nor should they but for sure a positive equity crowdfunding financing round can help them get there if their goals and requirements are aligned with the market.
Is Equity Crowdfunding Right for Our Business?
- Crowdfunding provides an alternative source of funding for businesses when traditional methods like IPOs or venture capital aren't available or practical.
- It helps companies build a loyal community of investors who are often also customers, strengthening brand loyalty.
- Equity crowdfunding also allows everyday people to invest in innovative businesses, making investment opportunities more accessible to everyone.
Equity crowdfunding is not risk free! Private companies are less transparent and liquid than public companies. To sell your private shares you need to find a buyer or wait for a liquidity event to exit your position (so you may not see a return on investment for a number of years, if any). With all startups and early stage companies, there's a high risk of failure (not crowdfunding related but worth mentioning to anyone new).
Outlook
Because of the major obstacles that Canada's public markets are facing, such as a decline in IPO activity, decreased liquidity, and valuation issues, equity crowdfunding presents a competitive option for businesses looking for finance as well as for individual investors searching for interesting, high growth companies to invest in.
See: OSC Activates 3 New Interim Class Orders to Boost Early-Stage Capital
Investment crowdfunding has shown its potential for a variety of purposes, including the creation of new fintech ventures, supporting product expansions, driving growth, and even acting as a bridge to an IPO.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Rally Launches Equity Crowdfunding Deal for Group Travel
Investment Crowdfunding | Aug 15, 2024
Image: Freepik/onlyyouqj
Rally’s new SEC-approved campaign allows investors to own an equity stake in its crowdsourced group travel service
Customers and investors can now purchase stock in Rally, a crowdpowered travel startup, as the SEC-regulated investment crowdfunding campaign officially launched yesterday. Professional and every day investors including the general public will have the opportunity to contribute to Rally's innovative Mass Mobility as a Service (MaaS) platform, which allows users to plan or join bus excursions via its rideshare app to important events such as festivals, sporting events, and concerts.
See: CCA Launch Crowdfunding Genome and Ecosystem Report 2024
Rally's use a tech platform to link hundreds of small private bus operators offers efficient and flexible transportation solutions by crowdsourcing travel demand, which is a great solution for events with high demand. Its other brand, OurBus, offers more than 150 stops and schedules regular intercity routes throughout the United States and Canada. The current campaign marks a new milestone in Rally's growth, as the company plans to expand and even explore the possibility of going public. Through this equity crowdfunding campaign, regulated by the U.S. Securities and Exchange Commission (SEC), everyday investors now have the opportunity to own a stake in Rally.
Flashback to 2014 LineSixTransit Effort in Toronto
Rally's 2024 campaign demonstrates how crowdsourcing has changed over the years. Looking back to 2014, LineSixTransit, a Toronto-based crowdsourcing initiative, tried using a similar technique to crowdfund public transportation solutions to help resolve Toronto's transportation challenges. The project's goal was to establish a private bus service that would transport passengers between Liberty Village and Union Station and guarantee seats in return for nominal crowdsourced fees.
See: Canada’s Rising Tax Burden and Fintech Opportunities
After a week-long pilot experiment and a lot of initial enthusiasm, the Toronto Transit Commission (TTC) abruptly ended the project due to regulatory issues. While the outcome was unsuccessful due to regulatory issues, such project paved the way for tapping into the power of crowdfunding.
Conclusion
By allowing crowdsourcing demand and linking small bus operators via technology, Rally is developing a flexible, scalable approach to event-based and intercity transport. If the project is successful and eventually publicly lists, early investors will reap the benefits of a unique opportunity to participate in the mobility business.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Go Alberta New Equity Crowdfunding Portal Launches
Launch Release | Jul 18, 2024
Image: GO Alberta, Equity crowdfunding portal
A New Equity Crowdfunding Portal Dedicated to Servicing Albertan Small Businesses has Launched
July 17, 2024, Calgary AB - A new equity crowdfunding portal, Go Alberta, has announced it's launch, and is aimed at helping Alberta's small businesses. Throughout the province, small and medium-sized businesses (SMEs) will be able to access a community-driven finance solution. Go Alberta's goal is to empower local companies by introducing them to a variety of investors so they can raise the capital they require to expand and prosper. By democratizing investment options, this platform enables regular Albertans to contribute to and profit from the success of regional businesses.
See: Equity Crowdfunding Demystified: Insights from Wefunder and Equivesto
There are numerous of benefits to raising an equity crowdfunding campaign, such as:
- Offers an innovative and accessible way for companies to obtain capital, particularly those that are having trouble obtaining traditional finance.
- Gives Albertans the opportunity to support via investment the economic development of their local communities.
- Investors benefit when the companies they support develop and succeed, fostering a win-win situation in support of local economies.
Equity Crowdfunding Regulations
In Alberta and across Canada, equity or investment crowdfunding is governed by laws that safeguard investors and encourage SMEs to raise cash responsibly. National Instrument 45-110 (NI 45-110), which describes the Start-Up Crowdfunding Registration and Prospectus Exemptions, is the main regulatory framework.
See: CCA Launch Crowdfunding Genome and Ecosystem Report 2024
Key Provisions of NI 45-110
- Businesses can raise up to CAD 1.5 million within a 12-month period.
- An offering document outlining the company, the securities being issued, and the intended use of the proceeds must be prepared by issuers.
- Accredited investors may contribute up to CAD $25,000 per offering, while non-accredited investors may invest up to CAD $2,500 per offering, with an annual cap of CAD 10,000.
- Crowdfunding portals need to comply with operating guidelines and register with the appropriate provincial securities regulator.
Alberta Considerations
- Local companies may be able to take advantage of certain Alberta-specific local exemptions.
- To maintain accountability and transparency, companies and portals need to comply with all reporting requirements set by the Alberta Securities Commission.
Advocacy for Equity Crowdfunding
Equity crowdfunding provides a crucial option in the present funding environment, when the volume of traditional venture capital funding has decreased. Many prospective SMEs struggle to get the capital they need since traditional venture capital funding frequently favours larger, more established enterprises. Go Alberta fills in this void by:
See: Innovating Crowdfunding with Bitcoin’s Network
- Providing businesses with access to a broader pool of potential investors - a diversification of funding sources.
- Empowering businesses to raise capital independently of the volatile venture capital markets.
- Encouraging a diverse range of businesses, including those in early stages, to innovate and grow with a supportive investor community approach.
Conclusion
Equity crowdfunding is a movement to democratize investment in local communities. By connecting businesses with passionate investors, Go Alberta is paving the way for a more vibrant and resilient local business ecosystem.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Equity Crowdfunding Demystified: Insights from Wefunder and Equivesto
Forbes | Hessie Jones | Apr 3, 2023
Image: Johnny Price Wefunder and Alexander Morsink Equivesto
The time for startups to rethink venture capital alternatives has been gaining momentum.
- Is this the moment for Equity Crowdfunding (ECF) to emerge and become a viable alternative for startups? For startups domiciled in Canada vs the United States, jurisdiction and laws vary when it comes to choosing equity crowdfunding platforms. Qualification, campaign execution and benefits can also be different. What should you consider when getting ready to do your first capital raise?
- I reached out to two ECF platforms: Jonny Price, VP of Fundraising at Wefunder (US) and Alexander Morsink, Managing Partner at Equivesto (Canada) to understand these disparities but also demystify the many stereotypes associated with this emerging fundraising alternative.
See: Australian Equity Crowdfunding Markets Raised $72 Million in 2022
- The Legal Differences between Canada and the US
- Morsink illustrates that the publicly known concept of equity crowd funding is an umbrella term used to describe different ways private companies can raise capital in Canada. Private companies raising capital in Canada use prospectus exemptions, which are legal doorways that any company raising must bring their potential shareholders through.
- The first national ECF rules (NI 45-110 Startup Crowdfunding - similar to RegCF in the US) introduced in 2021 now allow companies raising capital to do so via an online investment platform.
- Offering Memorandum exemption (part of NI 45-106) “which is similar to the Regulation A (US) still allows the company to raise from the general public in Canada, but at no maximum raise limit.” In Canada, this option requires private companies to have ongoing audited financial statements and annual reports filed to regulators where 45-110 does not.
- “Accredited Investor” exemption allows high net worth individuals (HNW) to invest in private companies with no regulatory reporting.
- “Equivesto uses multiple prospectus exemptions at the same time for one issuer, so while a deal on the platform will be listed as an ECF deal open to the public, Angel investors will use the ‘Accredited Investor’ exemption, not the NI45-110 ‘Startup Crowdfunding’ exemption, as the legal doorway to make the investment.”
- Handling large number of investors?
- Wefunder has a lead investor who signs on behalf of all investors via special purpose vehicle (SPV)
- Equivesto recommends issuing a new class of non-voting shares and requiring investors to sign a voting trust agreement. Quarterly updates are recommended to keep investors engaged, and having many smaller investors can benefit the company by providing support and assistance in various ways.
See: Equity Crowdfunding Growth: It Took UK Seedrs 8 Years to Raise the First £1Billion and Only 2 Years for the Next Billion
- Social media is good for ECF because it reaches a lot of people and makes it easy to keep records, but scammers can use it to trick people. How do Wefunder and Equivesto protect people from scams?
- Wefunder and Equivesto both take measures to protect investors from fraudulent ventures in the ECF space, with Wefunder implementing fraud checks and offering features such as Lead Investors to provide signals for investors.
- Equivesto complying with regulatory requirements including verifying company information, conducting background checks on directors, and requiring companies to certify information is truthful before making it available to investors. Companies raising via ECF in Canada must also adhere to strict guidelines when using social media and other platforms to promote their campaigns, and investors are subject to a KYC and suitability review to ensure they are aware of the riskiness of their investments.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Australian Equity Crowdfunding Markets Raised $72 Million in 2022
Crowdfund Insider | JD Alois | Jan 30, 2023
Investment crowdfunding, or crowd-sourced funding (CSF) as it is called down under, generated $72 million in online capital formation, according to an industry report.
- The information is compiled by Birchal, the largest online investment platform in Australia. Birchals has been providing this report for several years now.
- While a smaller market, Australia continues to grow. In aggregate, since 2018, issuers have raised $219 million for approximately 250 SMEs.
- Average deal size – $733,000
- Average individual investment – $1695
- 70 securities offerings were over $1 million
- Total market estimated market cap of firms completing a securities offering at $1.4 billion
- There have been 50 follow-on securities offerings
- The largest securities offering to date was for ZeroCo for $5 million (October 2021)
See: CCA 2022 Investment Crowdfunding Report: 7 Charts Highlight Growth and Impact
- The fastest funding round was for Your Mates Brewing in October 2022 at under two hours
- Birchal reports the bulk of online capital formation for early-stage ventures at 192 offerings raising $144 million
- In 2022, most issuers were “growth stage” (49%) with greater than $1 million in reported revenue. Pre-revenue startups accounted for 16.5% of the funding activity.The number of pre-revenue firms raising capital declined from 2021, while revenue-generating firms raising capital increased dramatically.
- Industry sectors that have been the most popular issuers include:
- Food and Beverage at 39%
- Financial Services at 12%
- Sustainability at 11%
In 2022, most issuers were “growth stage” (49%) with greater than $1 million in reported revenue. Pre-revenue startups accounted for 16.5% of the funding activity. The number of pre-revenue firms raising capital declined from 2021, while revenue-generating firms raising capital increased dramatically.
Continue to the full article --> here
Download the 24 page PDF report --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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William Shatner Feature-length Documentary Reaches $790,000 Equity Crowdfunding Goal (less than a week)
Variety | | Jan 31, 2023
Image: Wikipedia, William Shatner
William Shatner fans bought up all the shares in the actor’s forthcoming feature-length documentary “You Can Call Me Bill” in less than a week — shelling out nearly $790,000 and topping the film’s crowdfunding goal.
- Legion M’s equity crowdfunding round for the Shatner documentary, exploring the life and career of the beloved 91-year-old actor, as of Monday had sold out from reservation holders before the company opened the offering to the public. Within four days, the project raised $789,655 from 1,338 investors.
- Distribution: The documentary has a production budget of $565,101, according to Legion M’s listing. After “You Can Call Me Bill” deducts expenses to third parties for accounting, legal, marketing and administrative fees, 100% of any revenue generated will be distributed proportionally to the film’s investors until they have recouped their initial investment. Any additional net revenue after that will be split, with 33% going to shareholders and 67% distributed to the producers of the film.
- With the Shatner doc, fans were able to invest directly in the Shatner documentary for a minimum of $100, subject to certain SEC restrictions, and they will recoup their money before any profits are shared with Shatner, Legion M or the film’s producer.
- The film is touted as “an intimate portrait of William Shatner’s personal journey across nine decades of a boldly lived and fully realized life.” The documentary “strips away all the masks he has worn during his storied career” — from Captain James T. Kirk to T.J. Hooker and from Alexander the Great to the Priceline Negotiator — “to reveal the man behind it all.”
See: Equity Crowdfunding Growth: It Took UK Seedrs 8 Years to Raise the First £1Billion and Only 2 Years for the Next Billion
William Shatner:
“For years I’ve had people approaching me to do a documentary about my life, but I turned them all down because it didn’t feel like the right fit. When I heard how Legion M wanted to incorporate audiences to be a part of it, it was perfect. Fans have been responsible for my career — it only seems right that they should own this doc.”
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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