The National Crowdfunding & Fintech Association of Canada (NCFA) has recently reported that after seven years of regulation crowdfunding, there are now 4,100 startups valued at $60 billion in Canada. This is a significant milestone for the Canadian crowdfunding industry, which has been growing steadily since the introduction of regulation crowdfunding in 2013.
Regulation crowdfunding is a type of crowdfunding that allows startups to raise capital from a large number of investors through online platforms. This type of crowdfunding is regulated by securities laws, which means that startups must comply with certain rules and regulations in order to raise funds from investors.
The introduction of regulation crowdfunding in Canada has been a game-changer for startups looking to raise capital. Prior to the introduction of regulation crowdfunding, startups had limited options for raising capital, which often meant relying on friends and family or traditional sources of financing such as banks and venture capitalists.
With the introduction of regulation crowdfunding, startups now have access to a much larger pool of potential investors, which has made it easier for them to raise capital. This has also led to increased competition among crowdfunding platforms, which has resulted in lower fees and better services for startups.
The NCFA’s report highlights the success of regulation crowdfunding in Canada, which has helped to create a thriving startup ecosystem. The report also notes that the Canadian crowdfunding industry is still growing, with new startups and investors entering the market every year.
One of the key benefits of regulation crowdfunding is that it allows startups to raise capital from a large number of investors without giving up equity in their company. This means that startups can retain control over their company while still raising the funds they need to grow and expand.
Another benefit of regulation crowdfunding is that it allows investors to invest in startups at an early stage, which can lead to significant returns if the startup is successful. This has led to increased interest from investors in the crowdfunding industry, which has helped to fuel its growth.
Overall, the success of regulation crowdfunding in Canada is a testament to the power of innovation and entrepreneurship. By providing startups with access to a larger pool of investors, regulation crowdfunding has helped to create a thriving startup ecosystem in Canada, which is poised for continued growth in the years to come.
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- Source: https://zephyrnet.com/celebrating-7-years-of-regulation-crowdfunding-4100-startups-now-valued-at-60-billion-national-crowdfunding-fintech-association-of-canada/