What Is Equity Crowdfunding
Plain and simple, crowdfunding is raising money from many people, the “crowd”. Normally, crowdfunding involves each member of the crowd contributing a relatively small amount of money.
You may have some familiarity with crowdfunding through sites like Kickstarter or Indigogo, where you can help bring a creative idea to life by contributing funds towards the production of a project. In the case of a consumer product on Kickstarter or Indigogo, crowdfunders pledge funds to put the idea into production in exchange for receiving one or more of the finished products, normally at a preferred price to what that product will eventually be sold for.
Equity crowdfunding is a little bit different. Companies raise funds to achieve a stated goal by accepting relatively small investment amounts from many investors or members of the “crowd” using a web-based portal, like Ascenta Opportunities. Instead of pre-purchasing a product, equity crowdfunders (in most cases) are purchasing a small piece (or shares) of the company.
If you invest in a crowdfunding campaign, you are hoping that the company becomes successful and that you will be able to profit from your participation at some later date.
Important things to know
– In order to become a Crowdfunder with Ascenta Opportunities, you must be a resident in one of the jurisdictions where Ascenta Finance Corp. is registered: British Columbia, Alberta, Saskatchewan, Manitoba or Ontario.
– The maximum you will be able to invest in any one particular offering is $2,500 on the Ascenta Opportunities portal. Want to invest more than $2,500? Contact us to see if you qualify to invest under other securities exemptions being offered.
– Details of each investment opportunity, including the minimum and maximum investment amounts and key information about the company will be provided in the description of each opportunity and in an Offering Document that we will posted on this portal. It is your responsibility to read the information provided and we urge you to pay particularly close attention to the stated risks of each investment. If you have any questions about a specific opportunity, please don’t hesitate to contact us.
– Under the prior bullet, we mentioned risks. The description and Offering Document for each opportunity will include the risks of investing in that opportunity. Please always keep in mind that every crowdfunding opportunity carries with it a high degree of risk, many of which may be factors beyond the company’s and your control. You may never be able to sell the shares you purchase in a company under a crowdfunding campaign. You should only invest using crowdfunding if you can afford to lose your entire investment amount.
– When you agree to purchase securities through Ascenta Opportunities, you have a right to change your mind and withdraw from the agreement to purchase the securities by delivering a notice of withdrawal to Ascenta Opportunities not later than midnight on the 2nd business day after you agreed to purchase the securities. Should an amendment be made to the Offering Documents, we will notify you of such amendment and you will again have a right to withdraw your agreement by delivering a notice of withdrawal to Ascenta Opportunities not later than midnight on the 2nd business day after we notify you of the amended Offering Document.
“Small opportunities are often the beginning of great enterprises”
-Demosthenes