Businesses interested in using so-called crowdfunding websites to raise capital are renewing calls for Canadian authorities to loosen securities regulations, following a dramatic example of the internet's potential to raise big money through many small contributions.
Online donors raised more than $500,000 in 24 hours to help an American school bus monitor who was bullied by schoolchildren, an incident viewed by millions after video was posted Tuesday to YouTube.
The Canadian Advanced Technology Alliance(CATA), an industry group representing high-tech companies, is worried that the JOBS Act will lead to brain drain if local companies opt to incorporate south of the border so they can engage in equity crowdfunding.In Canada, companies are allowed to solicit money through crowdfunding websites in exchange for goods or other perks, but it’s illegal for them to offer an equity stake in return.John Reid, CATA's president and CEO,said Canadian high-tech companies have been “actually routing crowdfunding through the U.S. by getting a partner there so that they could work around the regulatory barriers in Canada."
Founded in 2010, the industry website, Crowdsourcing.org, is a neutral organization dedicated solely
to crowdsourcing and crowdfunding. As one of the most influential and credible authorities in the crowdsourcing space,
Crowdsourcing.org is recognized worldwide for its intellectual capital, crowdsourcing and crowdfunding
practice expertise and unbiased thought leadership.