By Teri Kirk
Nowadays, almost every process a business person undertakes can be done online, from Googling a client’s address, to sending out an email, to filing your taxes. But will the complex processes behind securing government funding or raising capital from an investor ever be completed entirely online?
Earlier this summer, I was invited to give a TEDx talk in Toronto on the topic of “How Capital Markets are Yielding to the Web”. I argued that yes, capital markets are yielding to the Web in a big way. From crowdfunding to funding portals, digital technologies are fundamentally changing the way businesses access and secure capital. Here are some of the online innovations your business can benefit from today to source capital:
- Crowdfunding: The Ontario Securities Commission (OSC) is expected to release an exemption this year that will allow businesses to raise capital from the public. Under the proposed guidelines, businesses would be able to raise as much as $1.5 million a year, while investors could invest up to $2,500 per project, up to a maximum of $10,000 per year.
- Government Funding: MBOT offers a free funding search tool on its website. In addition, many funders now accept electronic grant applications.
- Exempt Markets: In July 2014, the OSC registered The Funding Portal as an Exempt Market Dealer (EMD) portal able to assist companies to access both sources of government funding and accredited investors (high-net worth individuals) through its unique online platform.
Watch the video below to learn more: