company is not successful in raising capital because potential investors, even though they want toinvest, feel the valuation is not right. SeedUps proprietary algorithms and patent-pending processallows investors willing to invest a minimum amount (say $10,000), to place a bid at a lower valuation, which the Company can accept or reject. If they accept, all investors receive the samevaluation price and the company closes the deal. Investors are engaged in the capital raise processand issuers receive valuable feedback on their investment pitches."SeedUps valuation technology has its basis in technology developed in another of my businessinterests, a peer to peer currency platform EuroXchanger," says Michael Faulkner, SeedUps CEO."The Company, founded in 2002, filed patents on its technology in 2003. SeedUps used baseassumptions of fair market pricing and market dynamics to create its own Patent pendingtechnology. We believe company valuation is the efficiency mechanism required to allow equitycrowdfunding to scale into a multi-billion dollar industry in the US, Canada and Europe."
The ECN / SeedUps Canada Plan
The SeedUps partnership is an extension of the original ECN / Crowd Capital vision. ECN and thenew SeedUps Canada operate in different, but complementary stages of an Issuers' capital raisecycle. SeedUps Canada helps in early stage financings, while ECN typically facilitates capital raisesfor more established companies. "ECN receives many quality business proposals from early stagecompanies," notes Neal Gledhil, ECN's CEO. "Although many of these companies are a soundinvestment opportunity, they do not require enough capital to reach out to high-net worth individualsand institutions - the very market ECN serves." In these cases, the opportunity will be turned over toSeedUps Canada, complete with due diligence and validation for posting on the platform."Additionally, many of the Issuers that raise capital through ECN may want to offer their securities toordinary investors and may choose to do simultaneous offerings on both platforms," continuesGledhil. "This is an ideal environment whereby the Crowd will have the opportunity to participate ininvestments alongside more seasoned investors and invest in deals they would not otherwise haveaccess to."This model can be replicated in other jurisdictions around the world and it is the companies' intent topursue other strategic partnerships as the industry evolves.
Equity Crowdfunding in Canada
There are no defined rules for Crowdfund investing (CFI) in Canadian securities regulations today;therefore the CFI market has not yet evolved in Canada as it has in other Global jurisdictions. Atinitial launch, SeedUps Canada's issuers will offer their securities through current prospectusexemptions available in Canada. The Ontario Securities Commission (OSC) recently issued aprogress report on their review of these exemptions to facilitate capital raising (OSC ProgressReport) and we are encouraged that they are contemplating the development of an OM exemption inline with Alberta's so we can expand opportunities to non-accredited investors in Ontario. In order tocomply with securities requirements inherent in today's Exempt Market, we have partnered with ECNto utilize its compliance functionality to efficiently manage our processes, all the while advocating for a review of compliance requirements for small investments.Securities regulators are reviewing new exemptions to address the needs of businesses raisingsmaller amounts of capital through equity Crowdfund investing platforms like SeedUps Canada.These regulations are expected to reduce regulatory compliance making it easier for smallbusinesses to raise capital and investors to find early stage investment opportunities. "Themomentum is in our favour," states Sandi Gilbert, "and we expect to see more changes in thecoming months. When and if these changes happen, we'll be ready to expand the platform to
Equity Crowdfunding Platform SeedUps Launches in Canada -- CALGAR...http://www.printthis.clickability.com/pt/cpt?expire=&title=Equity+Crowd...2 of 39/26/2013 9:38 AM