CATA starts online petition to legalize crowdfunding: ITBusiness Staff
June 20, 2012

Dozens of Canadians ranging from students to startup founders to business leaders have already signed up to support the cause online. 
6/19/2012 10:58:00 AM By: ITBusiness Staff

A day after releasing an open letter urging the federal government to provide a support framework for crowdfunding, the Canadian Advanced Technology Alliance (CATA) has started a petition to bolster the case for legalizing the fundraising practice in Canada.

In a statement today promoting the online petition, CATA president John Reid reiterated his message that Canada risks falling further behind in giving tech startups access to capital now that crowdfunding has been legalized in the U.S., U.K. and Australia. 

“Innovation is declining in Canada; we need to change more rapidly to become a more intelligent nation. Crowdfunding investing can help make that transformation happen,” Reid said. 

“If you would like to accelerate the arrival of crowdfunding investing, we would welcome the addition of your strength to our cause,” he added. 

Legalizing equity crowdfunding would require legislation to be passed by each province because securities regulation is a provincially rather than federally governed responsibility. CATA and other groups are now lobbying provincial governments across Canada to introduce laws making this type of fundraising legal.

Dozens of people have already signed the petition, which was created jointly with i-Canada, a subgroup of CATA lobbying to position Canada as an "intelligent nation." According to a note posted online alongside the petition, i-Canada is "asking (its) executive circle members to pledge a $1,000 contribution towards the $350,000 pool of funds we will use to set up i-Canada town hall meetings with mayors and to help develop and deploy i-Canada communication materials."