Although many members of Canada's startup community are eager to raise financing through crowdfunding, nearly two thirds don't even realize that equity crowdfunding is still illegal here.
In a new online survey gauging Canadian attitudes towards crowdfunding, 69 per cent of respondents said they've considered using such social media sites to fund their startups. But an identical 69 per cent also said they weren't aware that Canadian securities laws currently forbid equity crowdfunding in this country.
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The lack of awareness about the legality of equity crowdfunding in Canada is particularly surprising since 61.5 per cent of all people who responded to the survey said they're either current or past founders of a Canadian startup firm. In other words, the very community that stands to gain the most from equity crowdfunding doesn't even realize it's still illegal here.
Other key figures from the survey: 87 per cent of participants said they are “familiar with” crowdfunding in general, 84 per cent said they would use equity crowdfunding to raise money for their own startup venture, 82 per cent said they would use it to fund others' startup ventures, and the majority (43.6 per cent) said online investors who contribute money through equity crowdfunding shouldn't be given more stringent investor protections than regular offline investors.
The survey was conducted by the Canadian Advanced Technology Alliance and Ottawa-based firm Ideavibes. See an infographic of the survey results here.
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