FrontFundr

Successfully Funded!

$694,622
completed of $500,000 139%
*No closing minimum All funds raised will be delivered to the company at the close of the campaign
176
investors
Campaign Closed
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See documents below for the full perks terms and conditions.
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Overview

This campaign is about you. We are inviting you to be a part of the Investor Revolution and own a part of FrontFundr.

Founded in 2013, we are a FinTech company operating Canada’s leading equity crowdfunding platform connecting private companies with the public.

We democratize investing in private companies, empowering all Canadians to invest in companies they believe in. FrontFundr is Canada’s only equity crowdfunding platform operating from coast-to-coast supporting the entire investment process through our proprietary platform.

Through our first 7 successfully closed deals, we have demonstrated proof of concept and continue to gain traction. Now we're looking for your help to scale up our platform, build on our leading position in Canada, and expand internationally. Invest in the Revolution. Invest in FrontFundr.


NOTE: FrontFundr, as registered dealer, is raising capital (the “Offering”) for itself through its online platform. Consequently, pursuant to securities legislation, FrontFundr may be considered to be a Connected Issuer and such case may be considered a Material Conflict of Interest in this Offering. Read more at the bottom of this page and the Offering Memorandum.
 

Thinking about investing in FrontFundr?  There’s good news! We have designed tax strategies and referral incentives in order for you to maximize the benefit of your investment.  Click here to learn about the incentives we offer as part of our raise.

 

 

The Opportunity

FrontFundr is addressing three key opportunities:

  • Empowering all Canadians -  to invest in private companies
  • Unlocking capital -  to increase access to funding for entrepreneurs
  • Efficient marketplace -  to connect investors and entrepreneurs

Together, we are building a new curated marketplace that connects private companies with the public, where everyone can be an investor and invest in companies that they believe in. Companies can now simultaneously reach out to a much larger community to attract funding, as well as build a group of engaged, smaller investors.

 

 

Not only are we opening up the market, we are tapping into a much larger opportunity – The Democratization of Finance. Changing consumer behaviours and new technologies drive a new era of innovation in finance. Consumers demand greater transparency, ease of use, accessibility, and automation. Millenials are the agents of this change, but the market as a whole incrementally demands more transparency and convenience, and lower cost. FrontFundr, anticipating this shift in consumer behaviour, built the New Capital Market – empowering everyone to easily invest in companies they believe in – a free service for all investors.

 

 

Our Key Achievements

  • Multi-disciplinary team – over 100 years of experience in finance and technology
  • Track record – we have successfully closed 7 deals with 2,500+ users in just over a year
  • Registered dealer – we are the only platform operating across Canada as its own approved financial services firm (‘Exempt Market Dealer’) from coast-to-coast
  • Proprietary technology – we developed our own platform, enabling us to fully customize and scale up

 

 

The Platform

FrontFundr is an online two-sided marketplace serving investors and entrepreneurs.

 

 

 

We provide

  • Public access – empowering all Canadians to be investors and to drive innovation
  • Efficient capital – enabling companies to reach a much larger potential investor base including their entire personal networks, their customers, and the wider community of professional investors and the crowd
  • Streamlined investing – the process is simple and completed fully online
  • Screened investments – each company must go through our due diligence process in which we review all aspects of the business, offering investors the opportunity to make informed investment decisions
  • Online investing – whether the revolution to you is for social change, environmental impact, or keeping up with the newest wave of technology, FrontFundr has an investment for you

 

 

 

 Revenue Model

 

The success fee consists of two components; cash commissions as a percentage of the total funds raised; and warrants (option to purchase the company’s shares at a pre-defined price on or before a future date)

This means that by investing in FrontFundr, you also invest in the companies that successfully raise capital on our platform.

 

 

Market

Addressable Market – According to the Crowdfunding Industry Report (Massolution, 2015), the global market for equity crowdfunding grew to US $1.1B in 2014, and subsequently, to US $2.6B in 2015.  In countries such as the U.K., where equity crowdfunding was introduced several years ago, it is estimated that 20% of startups and growth companies use equity or debt crowdfunding.

 

 

As an online Exempt Market Dealer, FrontFundr’s addressable market in North America comprising the entire private market estimated at US $230B.

Regulatory Changes – New rules have recently been adopted, mirroring other countries, in Canada that enable all Canadians to invest in private companies. As an approved Exempt Market Dealer (registered financial services firm), FrontFundr can use and aggregate all existing and new rules making optimal use of opportunities to connect companies with the widest possible investor community.

 

 

Use of Proceeds

Assuming a maximum raise of $1,000,000, the proceeds of this raise will be used as follows:

  • 40% - Sales and Marketing ($400,000)
  • 30% - Technology & Platform Development ($300,000)
  • 15% - Investor and Company Onboarding ($150,000)
  • 15% - General and Administrative ($150,000)

 

 

Exit Strategy

FrontFundr plans to grow dramatically over the next several years and will be reinvesting its operating cash flow in to the continued growth of the company. Once operations have reached an optimal level, management will consider the best exit strategy for its shareholders. This may include a strategic merger or acquisition, or an initial public offering.

 

 

Investment Highlights

  • Capital raised in previous rounds: $550,000
  • Current Target Raise: $500,000
  • Maximum current raise: $1,000,000
  • Minimum current raise: No Minimum
  • Pre-money valuation: $4,100,000
  • Equity offered (target raise): 11%
  • Equity offered (maximum raise): 20%
  • Offering type: Common Shares (with Voting Trust Agreement)
  • Price per share: $0.32

 

 

Investor Taxation Benefits

This investment is EBC eligible for a minimum investment of $1,500.

This investment is RRSP/TFSA eligible for a minimum investment of $10,000.

Learn more about these and other benefits by clicking here.

 

 

The Investor Revolution

We are now inviting everyone to help us build the investor revolution; an inclusive new capital market enabling everyone to invest in companies that they believe in. You can now join the revolution by pre-pledging an investment amount that you feel comfortable with. Together we make the investor revolution happen.
 

Invest in the Revolution. Invest in FrontFundr.

 


NOTE – Material Conflict of Interest: FrontFundr, as registered dealer, is raising capital (the “Offering”) for itself through its online platform. Consequently, pursuant to securities legislation, FrontFundr may be considered to be a Connected Issuer and such case may be considered a Material Conflict of Interest in this offering. FrontFundr addresses this potential material conflict of interest by full disclosure to potential investors. FrontFundr will conduct this offering pursuant to applicable securities legislation and in accordance with its compliance policies and procedures that it applies to any other offering on its platform. However, as FrontFundr performed due diligence on itself, it may be implied that FrontFundr has not been impartial and may not have been as thorough in its due diligence as it has been for other companies on its platform. See also the Offering Memorandum.
Meet the Team
Peter-Paul Van Hoeken
Co-Founder & CEO
Anthony Couture
Chief Compliance Officer
Miika Makela
Chief of Investment Review
Aaron Stuart
Operations Manager and Dealing Representative
Jaime McNally
Due Diligence Manager
Steve Smith
Senior Deal Manager
Jasper Dikmans
Business Development
Blandine Mille
Development and Customer Success
Laurence Audette-Lagueux
Campaign Coach
Gary Sidhu
Accounting and Finance Analyst
Mitchell Nagy
Investment Analyst & Dealing Representative
Quan Lee
Senior Developer
Vic Wang
Junior Developer
Rachel Welsh
Client Services & Dealing Representative
Charles Vander Griendt
Regional Business Development Manager and Dealing Representative
Carly Moir
Creative Director
Lauren Nickel
Director
Peggy Van de Plassche
Director
Barry Macdonald
Director
Jill Earthy
Advisory Board
Daryl Hatton
Member Board of Advisors
Charmaine Crooks
Member Board of Advisors
Updates

FrontFundr

August 30, 2016

FrontFundr - In the Media

A new type of investment for investors: Equity crowdfunding

Our CEO Peter-Paul Van Hoeken joins BNN for a look at the new equity crowdfunding rules being rolled out in Ontario. He also tells us the different risks and opportunities that come with this type of investment for both the investors and the businesses.

 

Business In Vancouver

B.C. startup pioneering bank ownership through crowdfunding

December 2016

 

Les Affaires

Dix secteurs pour entreprendre

Novembre 2016

 

Business in Vancouver

Cash-strapped B.C. startups begin tapping equity crowdfunding

October 2015

 

Techvibes

FrontFundr, Guusto Succeed with Equity Crowdfunding

October 2015

 

Vancity Buzz

Vancouver equity crowdfunding platform closes first successful deal

September 2015

 

The Globe and Mail

New crowdfunding rules open doors for companies and investors

July 2015

 

Business in Vancouver

IPOs vs. investors: Vancouver tech startups debate raising capital

May 2015

 

Techvibes

FrontFundr Launches to Provide Investors and Companies Access to a New Capital Market

June 2015

 

Investors
176 total, 61 anonymous
Adam Kagan
Mahigan Lepage
Jerome Curlier
Geoff Pedlow
Documents
General Risks
By accessing this site you agree to be bound by FrontFundr’s Terms and Conditions and Privacy Policy. FrontFundr distributes exempt market securities to qualified individuals as defined by National Instrument 45-106, Prospectus and Registration Exemptions and crowdfunding exemptions including Multilateral Instrument 45-108 Crowdfunding and Multilateral CSA Notice 45-316 Start-up Crowdfunding Registration and Prospectus Exemptions.
As an exempt market dealer, Silver Maple can trade and underwrite exempt market securities. Exempt market securities are risky investments and you could lose all the money you invest in such securities.
In general, investment products sold in the exempt market are considered high risk because:
  1. They are not covered by deposit or investor protection insurance;
  2. Regulators do not review offering memoranda for completeness;
  3. Private issuers are not subject to the same ongoing disclosure obligations as reporting issuers;
  4. Private issuers may inadvertently, or advertently, refrain from providing an investor or a registered dealer, all the information required to make an informed investment decision.
  5. Many exempt products are not as liquid as publicly-traded securities and you may be restricted in your ability to sell or transfer these securities; and
  6. Exempt products are often subject to a greater degree of “key person” risk than more widely held securities.
  7. There can be no assurances that an investment will maintain its net acquisition value or produce any projected income or capital return. Investment values change frequently and past performances may not be repeated.
  8. Using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines. See “use of borrowed funds”.
The risks highlighted above are not conclusive. Risk disclosures specific for each offering are reviewed by SMV and are presented within an issuer’s profile page on the platform and within the offering memorandum or other offering documents for the issuance. Offering documents and the risks associated with the securities of an issuer contained therein should be reviewed thoroughly by an investor or an investor’s professional advisors before making an investment.
This web site is for general information only and is not intended to provide personalized advice, including investment, financial, legal, accounting or tax advice. FrontFundr will assess your suitability to invest in the products offered on its platform.
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604-563-5990