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?'