Ontario Securities Commission may allow crowdfunding for some businesses

Canada FlagSocial media wants to meet up with corporate finance on the Internet to let startup and small businesses raise money online.

It’s called equity crowdfunding — different from Kickstarter which funds creative projects like movies, games or music and — because it would give these online investors shares in a company.

CEO and president Chad McMillan of Canada Gold Corp. (TSXV:CI) said equity crowdfunding would bring in more investors contributing smaller sums of money, spreading the risk.

“Crowdfunding is an innovative technique using modern technology that provides an opportunity to do that,” he said in an interview.

He said it would help democratize investing, allowing small investors help get companies off the ground.

“I believe there are people who would love to have access to those opportunities as opposed to it just being reserved for the distinguished few.”

McMillan said publicly traded junior mining companies such as his own, start-up technology and resource companies and any number of businesses would benefit.

“Many companies are finding it quite difficult to access and raise capital to advance their projects or their ideas,” said McMillan, whose company is based in Vancouver.

Read More at CP24