Start-up Crowdfunding Exemption

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

Please check out the BCSC's video to help get you started. Also view the Canadian Administrators’ FAQs on start-up crowdfunding (FAQs)

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.

Funding portals 

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.

Guide for Funding Portals (CSA Staff Notice 45-329 Guidance for using the start-up crowdfunding registration and prospectus exemptions - Appendix 45-110 Appendix 2)

Forms:

Funding Portal Information - Form 45-110F3

Portal Individual Information – Form 45-110F4

Semi-Annual Financial Resources Certification – Form 45-110F5

Risk Acknowledgement – Form 45-110F2

Businesses at the early stage of development can use this guide to gain an understanding of their regulatory obligations and responsibilities to investors.

Guide for Businesses (CSA Staff Notice 45-329 Guidance for using the start-up crowdfunding registration and prospectus exemptions - Appendix 45-110 Appendix 1)

Forms:

Offering Document – Form 45-110F1

Report of Exempt Distribution – Form 45-106F1Additional Information:

How to Raise Capital handbook

CSA Staff Notice 45-329 Guidance for using the start-up crowdfunding registration and prospectus exemptions