FrontFundr is open to investors of all levels of investing experience. However, some opportunities may only be available to Accredited Investors.
Under the Crowdfunding Exemption, for those who do not meet the criteria of an Accredited Investor will be considered a retail investor. However, under the Offering Memorandum Exemption, there is an additional investor status recognized by law, an Eligible Investor.
An Eligible Investor meets one of the below criteria:
Individual annual income before taxes exceeded $75,000 CAD for the past 2 years, and is expected to be the same or above this calendar year,
Income before taxes, alone or combined with a spouse, exceeded $125,000 CAD for the past 2 years, and is expected to be the same or above this year, or
Total Net Assets as an individual or combined with a spouse exceeds $400,000 CAD.
An Accredited Investor is applicable in all provinces. The most common thresholds for individuals are:
An individual whose annual income before taxes exceeded $200,000 in each of the 2 most recent calendar years and is expected to exceed that amount in the current year,
Annual income before taxes combined with a spouse exceeded $300,000 in each of the 2 most recent calendar years and is expected to exceed that amount in the current year,
Net Financial Assets, individually or combined with a spouse, are greater than $1,000,000 (not including real estate), or
Net Assets, individually or combined with a spouse, are greater than $5,000,000 (including real estate).
A Retail Investor is someone who does not meet the criteria for Eligible or Accredited Investors.
For further Accredited Investor and Eligible Investor Definitions please refer to the Definitions in 1.1 of NI 45-106.