Today is a momentous day for the private capital markets in the USA.
3 1/2 years after the US congress passed the JOBS Act, the Securities and Exchange Commission “SEC” has finally issued Crowdfunding regulations. For the first time in the history of the SEC (82 years), ordinary people, without income, wealth or sophistication qualifications, can invest in private business.
But for me, it has a different meaning all together. That’s because, when people ask me why I founded SeedUps Canada, I usually start with …
“well, in 2012 Obama signed the JOBS Act” …
It is true, the day I heard that Obama signed the JOBS Act, my co-founder and I set out to figure out how we could use technology to allow the same opportunity for Canadian individuals while still complying with the disparate regulations we have in Canada . Today, I can hardly believe it has been three years since the word Equity Crowdfunding entered my sphere. Much has happened since that time.
- We launched the first online platform to execute a private capital transaction online – see “First Ordinary Investor“
- The ASC issued its Offering Memorandum “OM” Blanket Order that allowed companies raising less that $500K relief from the audited financial statement requirement
- Six jurisdictions implemented the Start-up Crowdfunding prospectus exemption
- The ASC announced its intent to implement a Start-up Business prospectus exemption
- The OSC issued the final regulations for its version of the OM prospectus exemption – quasi harmonized in six jurisdictions, and
- today, the SEC passed Crowdfunding regulations
“Folks – Elvis has left the building”
Disruption has started. The next 18 months are sure to be exciting in the private capital markets. We now have more participants in the Canadian marketplace and are on the cusp of making real change here. For our part, we will continue to develop and deploy technology solutions like OfferingPoint and SeedUps that make it more efficient and seamless for companies to access the capital the need to grow their businesses. We will work together with other stakeholders to provide transparent access to quality investment opportunities for all investors. From day one – our mission has been to broaden investor access and lower to the cost of raising capital for Canada’s early stage companies. Adoption is happening. Three years of perseverance is paying off. We’re excited to part of the revolution.