Crowdfunding Changes May Be Coming
The province is trying to loosen some rules to help the little guy make some big bucks.
It's looking to allow investors to pump money towards crowdfunding - a type of online campaigning for cash - for stocks, inside of having any money given be listed as a donation.
As it stands, any small-time inventors that have no way to market their products go to crowdfunding websites like Kickstarter and Indiegogo to get strangers to help finance them. In return, the investor doesn't get a stake in the company but many a t-shirt or access to a product before anyone else.
Minister of Economic Development Brad Duguid says they are mindful that fraud can be a concern in these cases and expects the Ontario Securities Commission to be very thorough when contemplating how to makes things easier and safer for people.
While these websites have disclaimers saying not every project that is being given cash gets off the ground, Duguid admits it can be tough to regulate. However, he underlines people who back entrepreneurs know there is also some sort of risk involved.