DealMaker, a crowdfunding company based in Canada but providing services across the US, has been named the 3rd fastest growing company in Canada – reporting a huge 500% rate of growth. While based in Toronto, DealMaker reports 124 employees with a presence in both the US and South America.
Co-founded by two attorneys, Rebecca Kacaba and Mat Goldstein, DealMaker is a company that offers sophisticated capital raising tools for companies raising money by selling securities online. DealMaker powers a portfolio of primary issuance, shareholder management, and capital raising solutions that includes equity crowdfunding, investor ranking algorithms, and data tools to support all capital raise types and all securities. The Toronto-based firm offers a digital platform that streamlines the process of online capital formation and the concept has generated significant success in the past few years.
Canada’s Top Growing Companies
The Report on Business, part of Canadian newspaper the Globe and Mail, ranked independent companies based on their percentage growth over the past three years. Canada’s Top Growing Companies is a ranking that was launched in 2019 and seeks to highlight entrepreneurial success in Canada. For this year’s list of fast-growing firms, a total of 430 companies earned a spot. According to the ranking, DealMaker generated between $10 million and $25 million in revenue in 2021.
Kacaba and Goldstein came up with the DealMaker concept in 2015 while operating a “startup practice” at a large law firm.
Kacaba, who is CEO, said they saw a huge pain point in the markets where their clients were struggling while attempting to raise capital in a process that was described as obsolete and expensive. Kacaba explained that online capital formation was ripe for disruption:
“Our innovation is advancing the equity crowdfunding space by increasing access to capital to founders who previously have been under-funded while also providing pre-IPO investment opportunities for those not behind the gilded gates of Wall Street.”
DealMaker enables the full stack of securities exemptions in both the US and Canada – including Reg A+, Reg CF, and Reg D as well as the OM exemption [Offering Memorandum] and private placements. This past week, Prime Trust revealed that its FundAmerica service, launched to aid investment crowdfunding offerings, will be cycled down with DealMaker being the preferred transition partner, providing the services as Prime Trust focuses on digital assets.
Since the firm’s launch, DealMaker has processed a whopping $1.6 billion in funding enabling more than 650,000 investments. The company claims to have enabled more funding than any other competitor in North America.
The DealMaker service has a mission of turning customers into shareholders allowing brands to raise capital beyond the VC path. As was previously reported, DealMaker has enabled 8 of the 10 largest online capital raises in the past 14 months.
Goldstein, Chief Strategy Officer, explained that what makes their service unique is the end-to-end platform powering online capital formation:
“From the initial identification of leads and prospects, our best-in-class conversion functionality, and even after the round is closed with our state-of-the-art transfer agent, DealMaker is a pioneer in developing the online relationship between companies and their shareholders. We aren’t just going to list an offering on a website – we are going to partner with you to develop an entirely new relationship with your stakeholders.”
CI touched base with Kacaba to ask her for some additional insight following the recognition of being one of the fastest-growing companies in Canada. She shared that both Reg A+ and Reg CF are highly active on their platform – alluding that this is the bulk of the $1.6 billion raised to date. As for the OM exemption, Kacaba described it as highly complex but they have been able to make it more usable for Canadian firms.
We asked about a Canadian firm serving US issuers and if it was the original intent to focus on the US market. Kacaba said the vision was always of a single market – accessible globally:
“With so much cross-border activity in both jurisdictions (US & Canada), we are in a unique position to serve the largest capital market in the world – the US,” said Kacaba.
She added that they have a Broker Dealer license, operating via DealMaker Securities, allowing for “new and innovative products that benefit all of our clients and partners – including other Broker-Dealers that leverage our technology and analytics.”
So what makes DealMaker so special? Why have they experienced such dramatic growth?
“We have always been issuer-focused. We’ve built a platform that allows issuers to white-label our technology so they can effectively raise capital on their own website. This is a far cry from the competition, which aggregates multiple deals with a focus on attracting and delivering value to investors,” explained Kacaba. “Our end-to-end solution provides an eCommerce experience to investors while empowering the issuer with real-time actionable data and analytics to optimize their subscriptions and investor funnel. Issuers on our platform see a higher investor conversion rate because they own the funnel and can effectively re-target to drive the outcomes they need. Our tech also supports private placements and warrants – so all aspects of the capital raise are supported by our platform.
As for 2023, Kacaba issued a bold statement of a “North Star mission” of “total global domination.”
“Joking aside, our mission is to build technology that can create a single Capital Market – all deal types, all stages of raising, all countries. Our plan is to expand and bring innovation and technology to all aspects of the Capital Market, innovate, and continue to grow at our current rate of 500+%.”