Why we created the CanaDragon Interchanges
There has always been a problem for start-up companies and entrepreneurial ventures to raise that first big chunk of money that could take them from the stage of great idea to market confirmation or even real operations. For some years now an internet phenomenon known as reward crowdfunding has been filling that funding gap. Sites like Kickstarter and Indiegogo have facilitated the raising of hundreds of millions of dollars in donations from the public to support promising new enterprises and causes. For their donations, public funders get some sort of reward once the project they supported gets going…often the product that is the outcome of the project.
For many new companies and commercial ventures, reward crowdfunding is just not appropriate, and for many supporters of new ideas, they would much rather actually invest in the project and take real ownership in it rather than just receiving a gift for their interest. So, now along comes common equity crowdfunding…a new type of crowdfunding that allows everybody to actually invest, that is buy common stock or equity in new ventures without going through all of the costly regulatory rigmarole that generally accompanies initial public stock offerings. Common equity crowdfunding can only be done in certain places, under certain conditions set by securities regulators, and via certain types of intermediaries called portals on the Internet.
In May of 2015 six Canadian provinces, led by Saskatchewan, joined in a highly unique, seamless common equity crowdfunding marketplace that allows new companies in any of the six participating provinces (BC, SK, MB, QC, NB, and NS) to raise money via equity investment from residents of any of those provinces. There are many special conditions on these raises, but one of the most important is that the transactions must be handled through special internet sites created specifically to serve as the transaction portals. Our company, Canadian Common Equity Crowdfunding Corporation, has created not one, but two of these portals to facilitate common equity crowdfunding in the six participating provinces… the CanaDragon Enterprise and CanaDragon Venture Equity Crowdfunding Interchanges.
The CanaDragon Interchanges are intended to set the standard in Canada (and the world) for common equity crowdfunding facilitation by striving to create as orderly a primary market as possible. This will be done mainly by working to help our issuer companies achieve a certain minimum level of corporate infrastructure that will promote reasonable and consistent management of funds and funded operations.