Online platform helps millennials invest in Canadian businesses

Jun 26 2020, 6:00 am

Canada entered a recession in the first quarter of 2020 due to the COVID-19 pandemic. The economy continues to face new challenges, but this is also a time when innovation is high.

Many successful businesses were started during times of economic hardship, and they experienced growth with the help of investors. FrontFundr, a Canadian-born online private capital markets platform, holds this idea close to its core and is helping young companies succeed during these trying times.

The company acts as a bridge that connects investors to entrepreneurs. Its mission is to democratize Canada’s private capital markets (aka make them accessible to all Canadians).

Whether you’re a professional accredited investor or a first-timer, FrontFundr can help you find emerging and promising companies to invest in, while also helping early-stage companies gain access to the capital they need to grow and thrive.

The platform has already built up a community of 17,000 investors nationwide who have helped more than 50 companies raise over $40 million. FrontFundr is now leveraging its funding and investment solutions with its own equity crowdfunding campaign to help its customers and foster business growth.

FrontFundr Vancouver team/FrontFundr

In 2018, North American companies received twice the amount of investments from private sources as from public sources, with an average of three to four percent greater returns. However, Canada’s securities regulatory environment created barriers to private capital, making it difficult for the everyday investor to participate before deals go public.

To connect Canadian entrepreneurs and investors, FrontFundr worked with the Ontario Securities Commission (OSC) to implement a new piece of legislation: the Ontario Instrument 45-505. This change has resulted in 24/7 access to private markets for Canadians coast to coast.

One of the company’s core beliefs is investing for a better future, whether that’s by supporting a ski resort that wants to keep its prices affordable for locals, or enabling investments in a sustainable clothing store that gives back to the community.

To put this into context, Victoria-based restaurant The Very Good Butchers ran a campaign on FrontFundr raising $600,000 from 240 investors two years ago. Anyone was able to invest, from as little as $250. It recently listed on the Canadian Stock Exchange as one of Canada’s first publicly listed plant-based food companies. This led to a considerable return for the company’s initial investors as shares are now trading higher publicly.

 

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The past few months have shown Canadians why investment crowdfunding, online funding, and direct investing are important to the private markets ecosystem.

“COVID-19 has put a strain on all aspects of our lives. We must act now to protect and nurture Canada’s startups and growth businesses,” Peter-Paul Van Hoeken, founder and CEO of FrontFundr, said in a statement on the company’s website.

FrontFundr has worked on initiatives to help startups get through the ongoing crisis, even teaming up with FundRazr, LendingLoop, and Wayblaze to launch Save Our Shops — a small business relief bond.

 

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Anyone interested in growing their portfolio (or investing for the first time) can think of FrontFundr as an online version of their favourite entrepreneurial TV show, and ultimately support companies they believe in.

FrontFundr’s equity crowdfunding campaign is running until Friday, July 3, so you still have time to become a co-owner and invest in Canada’s leading online private markets platform. The minimum investment is $500. For more information and to learn how investing via FrontFundr could benefit you, visit frontfundr.com.

This content was created by Hive Labs in partnership with a sponsor