Type of Raises
Updated over a week ago

There are two core types of raises we facilitate:

  • Offering Memorandum

  • Equity Crowdfunding

Crowdfunding and Offering Memorandum raises are very similar - they both allow companies to raise capital from retail and eligible investors across Canada.

Specifically, they differ in some of the following ways:

  • Audit requirement: companies using an OM must provide audited financial statements indefinitely; crowdfunding does not require this.

  • Raise limits: crowdfunding is restricted to $1,500,000 over any 12-month period; there are no limits with an OM.

  • Investor limits: as described above.

  • Length: a crowdfunding campaign can run for up to 90 days; there is no limit for OMs, as long as financial statements for the company are up to date.

  • Disclosure: an OM is a longer form document than the offering document that is prepared for crowdfunding campaigns.

  • History: OMs have been used in the exempt markets in most jurisdictions since the early 2000’s; Crowdfunding was introduced to Canada in 2016.

If you are an issuer thinking about a capital raise on FrontFundr and are unsure what’s best for you, please check out our FAQ for entrepreneurs.

Offering Memorandum raises are facilitated through NI 45-106 section 2.9, while Crowdfunding Raises use rule 45-110.

For information on how much you can invest per exemption, check out 'How Much Can I Invest?'

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