Startup news roundup: IT World: CATA reacts to U.S. crowdfunding law
March 27, 2012
CATA reacts to U.S. crowdfunding law
The Canadian Advanced Technology Alliance (CATA) issued a statement exclusively to ITBusiness.ca reacting to the recent passage of crowdfunding legislation in the U.S., which allows startup firms to directly solicit equity financing from consumers over the Internet. The practice formerly required the cumbersome, expensive process of filing a prospectus with the U.S. Securities and Exchange Commission.
“CATA applauds this major development in the United States and congratulates our colleagues who worked so diligently to get the legislation passed,” said Barry Gander, executive vice-president of CATA. “CATA plans to bring the crowdfunding message and champions to Canada to help crystallize the movement here.”
On May 24 Sherwood Neisse, one of the most outspoken advocates for crowdfunding in the U.S., will speak about the movement at an i-Canada event in the Toronto area (exact event details have not been released yet). CATA has expressed concern that Canadian tech startups will fall further behind their U.S. counterparts in landing financing unless Canada also legalizes crowdfunding.
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