Investor FAQ

ID Verification

We work with Equifax a third party credit bureau to verify your identity.  This is required by the Canadian Securities Regulators.  There are several reasons why your identity may not be validated online. 

  • If you identity has been previously compromised
  • If you have reported any lost or stolen credit cards
  • If you are new to Canada
  • If you don’t have a Canadian credit file  
  • If you have not lived at your current address for more than 24 months and your credit file has not been updated.

If your ID Verification step fails, you will be asked to enter your primary phone number. A FrontFundr representative will then contact you to arrange a quick video call to verify your identity. 

No information is exchanged via FaceTime or Skype, we will only compare you in the video conference with your uploaded government ID to complete this step required by the Canadian Securities Regulators. 

The Canadian Securities Regulators requires FrontFundr to verify your identity prior to allowing you to invest.  Since your ID verification could not be completed online via Equifax, we must do it virtually by comparing you with your uploaded government ID.

 

Schedule your 30 second FaceTime or Skype call here

If you don’t have a Skype or FaceTime account, we need to find an alternative method to verify you with your government ID prior to letting you proceed with your investment.

 

Please schedule your ID Verification call here (explain in the additional notes section, you don’t have Skype or FaceTime).

Your government issued photo ID uploaded in the Documentation tab is not used for your online ID Verification step.

 

There are no issues with your ID upload. For more information why my identity failed, see above. 

No, you only have to perform this step on your first investment. 

Documentation

Please upload a government issued photo ID.  The photo must be clearly visible and valid (not expired).  Any form of government issued ID is acceptable, providing it has your photo.  

No, you only have to perform this step on your first investment. 

Investor Documents

FrontFundr is required by Canadian Securities Regulators to perform a review of your investment to make sure it is suitable for you based on your financial portfolio.  We sometimes receive extremely high volumes during campaigns and there might be a slight back log.

 

We will work diligently around the clock to get you your investment documents  to you as soon as possible.  

 

Once we complete the suitability assessment, we will be sending you your investment documents (with instructions) how to sign and complete electronically.  

Payments

Funds are transferred to FrontFundr to hold in escrow by means of Interac Online through the FrontFundr Platform, Interac e-Transfer, Wire Transfer, Direct Deposit, or via Sending a Cheque. Payment instructions are sent to investors at the same time that the investment documents are sent.

Investing in Crowdfunding

To invest on FrontFundr you must be 18 years or older. Each province in Canada has different crowdfunding rules that must be adhered to - please see the Regulation page for the rules applicable to your province of residence.

 

Each province in Canada has different investment limitations - please see the Regulation page of FrontFundr for investment limits for your province of residence.
If the company is using equity crowdfunding, investors will have up to 90 days to invest in the offering. The time line may be cut short by the company anytime after the minimum closing amount is met or if they decide to remove their listing from Pitch Place.
If the closing minimum is not reached within 90 days, the funds will be returned to investors at no penalty.

 

Yes! FrontFundr acts as the liason between the company and prospective investors - Click 'Ask a Question' in the company's campaign page in Pitch Place.
Typically there are three ways in which you may see a return on your investment: The company is aquired by another company, at which point you would sell your shares; The company goes public on a stock exchange, at which point you may sell your shares on the open market; Or the company generates excess cash and decides to issue dividends to their shareholders.The 'Offering Document' and 'Shareholders Agreement' will outline any specific sale restrictions on your shares. 
Once the issuing company has confirmed that the investments have been finalized, FrontFundr will transfer the funds raised to the issuing company. Closing documents will be sent to investors within 15 days of the closing. You may monitor your investment in your account page under 'My Investments'. Issuing companies will keep their shareholders updated through email correspondence - generally after each quarter.

General

Equity crowdfunding opens the venture capital world up to everyone. This allows anyone to invest in promising companies along side seasoned investors at an early stage in the company's development. Adding these types of companies to your portfolio allows you to increase efficiency through further diversification. This opportunity also allows you to support innovative companies that you want to see succeed and change the world. 

 

Do your research, understand what you are investing in and know the risks. For more information on equity crowdfunding please review the Start-Up Crowdfunding Guide for Investors.
Yes! See the Regulation page to see the investment limits for your province of residence.
An Offering Document is a legal document that includes crucial information such as the company's financial statements, management biographies a description of the business model and more. This is an 'disclosed document' available in the campaign profile of all companies using equity crowdfunding. The company may also choose to make other documents available to prospective investors in the 'Documents' or 'Financials' tabs of their campaign profile.
The answer to this question lies in the ‘Use of Funds’ section of the ‘Offering Document’. This section breaks down where and how much of the proceeds will be allocated.
Companies that look to raise capital from the 'crowd' through FrontFundr are generally early stage companies, which means they are both high risk and have high growth potential.
Companies raising capital through FrontFundr are required to issue shares with limited liability. This means that your liability is limited to the amount you invest and you can not be held accountable for any fees that result from business operations, legal action against the company, bankruptcy or any other reason. 
For whatever reason, if you decide to change your mind about your investment, you have 48 hours to cancel or withdraw the investment. You also have the right to withdraw your investment within 48 hours of the funding portal informing you of an amendment to the offering document. To do so, send an email to compliance@frontfundr.com to request withdrawal of your investment.

Coming soon

It is FREE to join FrontFundr and view the investment opportunities on our platform. Click Join the Revolution to create an account and gain full access to campaign profiles of companies in Pitch Place.
No! The amount you invest will go solely to purchasing shares. FrontFundr receives compensation from the companies that successully raise capital through the FrontFundr platform.
For the easy steps to becoming an investor through FrontFundr please see the How It Works page of FrontFundr.

Ready to Register as an Investor