NEWMARKET, ON – May 02, 2012 – On May 24, 2012, Sherwood Neiss, co-founder of the investment-based crowd funding effort, will speak about the movement during a Canadian Advanced Technology Alliance (CATA) conference happening in Newmarket from May 23-24, 2012. He will describe the advances in technology, the Internet and social media that allow an entrepreneur to raise a limited amount of capital from friends, family and the community under a framework that provides for investor protection.
Earlier this month, Barack Obama signed the JOBS Act, officially opening up a new source of funding for small US-based companies and start-ups. Much of the attention so far has been on this component of the bill because it would allow financing via crowd funding permitting participants to raise as much as $1 million a year without having to do a public offering — a step requiring state-by-state registrations that can cost thousands of dollars. The belief is that this form of funding will create more opportunities for capital to flow into start-ups which, in turn, helps stimulate the growth of Intelligent Communities through the growth of new companies creation of new jobs.
CATA is lobbying provincial securities regulators to make similar changes here in Canada. While the new American legislation would be overseen by a single national watchdog, the U.S. Securities and Exchange Commission, Canada still has no national securities regulator, after a Supreme Court decision recently declared such a body unconstitutional.
I-Canada is adding its advocacy support to CATA’s Crowdfunding campaign led by i-Canada Co-Chair Dr. Cindy Gordon, CEO, Helix Commerce International Inc., and Co-Founder, SalesChoice. “We are in a crisis in Canada in funding for early stage companies; capital access is down by over 60%, as private equity firms have moved to lower risk investments. The implications to Canada’s innovation capacity will have significant long-term impacts. Canada was recently ranked as a D in Innovation performance, and ranked 14th out of 17 nations in terms of how well we are able to turn ideas into innovative real world solutions; Canada’s economic future is at risk. Crowdfunding is an innovation stimulus that can solicit small equity investment from non-accredited investors and receive funding from “the crowd”, according to Dr. Cindy Gordon. ”We need to rapidly jump-start equity acceleration in Canada, crowdfunding is an emerging model for Canadian’s to embrace and pick up the growth pace.”
Crowdfunding could help companies in every region, according to i-CANADA’s i-Atlantic director Gary Stairs: “We laud the leadership of Sherwood Neiss and his peers in the US. For decades out here in the Maritimes, advanced learning technology firms have withered on the vine, burdened either by a paucity of domestic capital or the costly and paternalistic regulatory apparatus of yesteryear. Now Canadian firms are already poised for mobile wallets, cloud-based technologies and mobile money: the prospect of ubiquitous, borderless investment is really a big burst of sunlight. Mind you, cautious consideration, oversight, clear standards and accountability frameworks are required. However, if we can realize a small portion of the $300 billion potential investment in the US alone, it will be a game-changer for exporting tech firms. Globally, we're all on the threshold of unprecedented creative destruction and disruptive innovation in the capital markets that will be embraced by a whole new crowd of investors. It will, hopefully, leave the old guard in the dust ... wondering what hit them.”
Mr. Neiss, Dr. Gordon, Gary Stairs and representatives from CATA Crowdfunding advocacy team are available for in-person, phone or email interviews on May 23 and May 24 and can discuss the following topics:
· ++ Why Canadian tech start-ups will fall further behind their U.S. counterparts in securing financing unless Canada also supports crowd funding.
· ++ How crowd funding can help build Intelligent Communities – those which have come to understand the challenges of the Broadband Economy, and have taken conscious steps to construct an economy capable of prospering in it.
· ++ Why building Intelligent is a necessity:
o From rural to urban growth – Urban populations will grow by an estimated 2.3 billion over the next 40 years, and as much as 70 per cent of the world’s population will live in cities by 2050.
o From planet in balance to global warming/population explosion – Cities consume 75 per cent of the world’s energy and produce 80 per cent of its greenhouse gas emissions.
o From youthful population to aging population – Each year, the percentage of people over the age of 60 increases. By 2050, the number of people over the age of 60 is expected to triple and will outnumber children under 15 for the first time in human history.
For more information about the upcoming Business and Bandwidth Summit, please visit: : http://www.n6bizseries.ca/.
Biography of Sherwood Neiss is available upon request.
To set-up interview or for additional information, please contact:
NATIONAL Public Relations