British Columbia Says OM Exemption = Equity Crowdfunding

The British Columbia Securities Commission (the BCSC) published a Guide in October 2013 called Capital Raising For Small Business (the Guide). The Guide states that it is for any small business, whether it be a start-up or an established business, that wants to raise money from private investors. It sets out how raising money from private investors differs from raising money in the public markets and it explains some of the securities laws that facilitate efficient and timely financings.

BCSC Says Offering Memorandum Exemption = Equity Crowdfunding

For those interested in equity Crowdfunding, the  Guide is particularly notable since it states that British Columbia has a number of exemptions that allow small businesses to raise capital from their family, friends and communities – in short, to do crowdfunding.

These include the family, friends and business associates exemption and the offering memorandum exemption (the OM exemption). The OM exemption allows companies to sell securities to anyone in B.C. without a prospectus, regardless of whether the purchaser meets any financial tests or has a connection with the directors and management of the company. There are no limits on how much a purchaser can invest and no limits on how much funding the company can raise. There are also no requirements that the trades be made through a funding portal.



  1. For us at #HealthyCrowdfunder educating investors prior to investing is mandatory. We don’t want to play big brother but it’s important investors understand the difference between investing and speculating. Whether it’s a man or a machine an intermediary plays an important role in maintaining investor protection while facilitating access to capital.

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