The Start-up Crowdfunding Exemption is a way for small businesses to raise capital by having each person within the crowd invest a small amount of money by way of internet portals with an expectation of a financial or investment return. This type of equity or debt crowdfunding is regulated by the Commission pursuant to a rule of the Commission, National Instrument 45-110 Start-up Crowdfunding Registration and Prospectus Exemptions.
The Start-up Crowdfunding Exemption forms and helpful links are listed below. For further information or to submit the completed portal forms email: nssc.Crowdfunding@novascotia.ca.
List of Crowdfunding Portals
To check if a portal is permitted to conduct start-up crowdfunding sales, please go to the CSA’s Check Registration website to search for the crowdfunding portal’s name. If you have a question about a funding portal, please contact us.
In Nova Scotia, start-up crowdfunding portals must be registered as a dealer or rely on an exemption from the dealer registration requirement. If a portal is a registered dealer, then it must comply with securities laws as a dealer including providing advice about suitability. If a start-up crowdfunding portal is relying on an exemption from the dealer registration requirement, then the portal is prohibited from providing any advice about the suitability of the investments hosted on its platform.
Please refer to the guide, which includes a checklist for exempt funding portals, below for assistance in understanding regulatory obligations for operating a portal by registered dealers or persons intending to rely on the registration exemption.
Businesses at the early stage of development can use this guide to gain an understanding of their regulatory obligations and responsibilities to investors.