Survey Reveals Attitudes in Canada towards Crowdfunding: Canadian Start-ups locked out of funding source – looking to capitalize on growing popularity of crowdfunding for creative or entrepreneurial endeavors.
October 16, 2012

Ottawa, ON – October 16, 2012 – Ideavibes founder and CEO, Paul Dombowsky, and CATA (Canadian Advanced Technology Alliance) CEO, John Reid, released the results today of a survey they collaborated on to understand Canadians’ attitudes towards crowdfunding and their willingness to participate as a funder or a start-up / social enterprise seeking funding.

Crowdfunding describes the collective cooperation, attention and trust by people who network and pool their money and other resources together, usually via the Internet, to support efforts initiated by other people or organizations. Crowdfunding occurs for any variety of purposes from disaster relief to citizen journalism to artists seeking support from fans, to political campaigns, to funding a startup company, movie, or small business. Crowdfunding is a form of crowdsourcing.

Paul Dombowsky, who also operates of the year-old Fundchange (www.fundchange.com) said, “the results of the survey show that there is both a desire and need for start-ups to access crowdfunding for start up funds. Over 65% have considered crowdfunding but the lack of a Canadian friendly platform has been getting in the way.”

He added, “The fact that friends and family (in our survey) made up almost 50% of the start-up funding shows that people are laying it on the line to start their businesses. We know that savings rates are declining and home values are under pressure so it is concerning that these sources of capital may be less available and could further hinder entrepreneurs from getting their start.”

CATA CEO, John Reid, noted, “Given that only 15% of respondants have participated as a funder in a crowdfunding campaign in the past, and only 12% as a fund seeker, the delta between awareness of crowdfunding and actual participation is fairly strong.”

The Survey sponors admit that the respondants skew towards the high tech and business community and that overall awareness of crowdfunding and the challenges for startups in Canada to use it as a funding source is likely to be much lower.

Reid concluded, “Canada is out of step with Europe, and with the U.S. in its recent move to legalize equity based crowdfunding to enable businesses to raise up to $1 million via online "funding portals. We need to adopt Crowdfund Investing to allow the nation’s emerging, small and medium sized companies to keep up with the pace of change.  Canadian start ups are simply locked out of this funding source.”

Infographic of results from the survey: http://blog.ideavibes.com/2012/10/15/crowdfunding-survey/

Paul Dombowsky will be presenting a series of workshops in Montreal  on Tuesday on the topics of crowdfunding and crowdsourcing to start ups, community organisations and service institutions.

For more information about crowdfunding or to arrange a talk or workshop with your organization, please contact paul@ideavibes.com and we would be happy to accommodate.

About CATA

The Canadian Advanced Technology Alliance (CATAAlliance) grows the revenues of its members by creating a collaborative edge -- a chain of expanding value that ripples across Canada’s Innovators, Commercializers, Users, and Professionals. The largest high-tech association in Canada, CATAAlliance matches businesses with opportunities across almost every sector, so that we can all do business together. Reaching out from Canada, CATAAlliance members are connected with investment and partnership opportunities with the major global companies. As 80% are exporters, CATA’s members are the arrow-head for global growth.

About Ideavibes

The Ideavibes Crowd Engagement Platform™ enables governments, brands and organizations to engage citizens, customers or members by creating crowdsourcing or crowdfunding campaigns  that are driven by the power of social media matched with traditional mediums. Ideavibes provides services and solutions that help you tap into the wisdom of the crowd to strengthen relationships through engagement, open innovation and participation. It’s about starting innovative projects, solving problems, building better products, setting new directions, being more crowd  or communityfocused, funding worthy initiatives and sparking social and operational change. Ideavibes with partner TELUS Communications also run Fundchange (www.fundchange.com) one of Canada’s first crowdfunding initiatives for charities and non-profits. For more information about Ideavibes, please visit www.ideavibes.com

# # # Ideavibes is a registered a trademark of Ideavibes Marketing Limited. All other trademarks and/or registered trademarks are the property of their respective owners.

For media inquiries, please contact:

Paul Dombowsky
Founder and CEO President and CEO, Ideavibes
paul@ideavibes.com
1.613.878.1681

John Reid, CEO, CATAAlliance
jreid@cata.ca
1.613.236.6550