FrontFundr, Canada’s largest equity crowdfunding platform and exempt market dealer, has partnered with DealSquare, a centralized platform for private securities offerings. Crowdfund Insider previously revealed the news when it was posted on an affiliated website. Silver Maple Ventures, the holding company of FrontFunder, said in a release that it is exciting to be “first movers in providing widespread investor access to private market deals, digitally connecting capital-raisers to all investors, investment dealers and their advisory networks.”
With offices in Toronto and Vancouver, Silver Maple Ventures is a national leader in the private capital markets, developing and operating two Fintech platforms to provide access to private markets in Canada and simplify the transaction process. FrontFundr is an online marketplace that allows all investors, both accredited and non-accredited, to participate in curated private placements through investment crowdfunding.
Peter-Paul Van Hoeken, Founder and CEO of Silver Maple Ventures, said that private markets have been growing at an exponential pace generating 3% to 4% higher returns than the public markets. Unfortunately, retail investors have been excluded from this equation:
“With FrontFundr, all investors can get in on the private market action,” said Van Hoeken. “The synergies work both ways. On the one hand, FrontFundr can now make its private placements available to other dealers and advisors by connecting to DealSquare. On the other hand, FrontFundr can make private placements listed on DealSquare available to its community of equity crowdfunding investors, truly democratizing access to the private markets.”
Launched in October 2019, DealSquare is a fintech solution that streamlines the currently fragmented private markets. Too frequently, private placement deals are most often marketed through word-of-mouth. By using DealSquare, investment opportunities are marketed online, and transactions are closed digitally.
With the onboarding of FrontFundr to DealSquare investors now have the opportunity to participate in private placements posted on DealSquare.
As of today, FrontFundr’s community of 15,000 investors can find, review and complete an investment in private placements on one digital platform. Since launch in June 2015, over CDN $20 million has been raised on the FrontFundr platform, with $5 million raised in 2019 alone. FrontFundr expects about $15 million in deal flow through the platform in 2020.
On November 27, 2019, the company obtained approval from the Ontario Securities Commission to use “start-up crowdfunding” rules in Ontario that were already available in other provinces. FrontFundr can now offer previous and future issuer clients the opportunity to raise up to $250,000 twice per year and any Ontarian can invest up to $5,000 with each offering where suitable.