Equivesto

Finance , Technology
Toronto, Ontario, Canada
647 371 5586
ir@equivesto.com
Equivesto Inc.
Equivesto Inc.

$238,672.00

239%
Funded Of $100,000.00 Goal
238.67% Raised
Offering Memorandum Offer. Structure
- Days Left
$500.00 Min. investment
$200,000.00 Max. investment
N/A Minimum Raise
$1,500,000.00 Maximum Raise

Offering Description

Equivesto is a licensed Exempt Market Dealer and Equity Crowdfunding portal that enables everyday Canadians to invest in vetted startups, small businesses, and real estate opportunities, starting at only $100 CAD. Through our service, businesses can raise up to $1.5M from their customers, fans, followers, and extended community members. It also happens to be this very platform you are on!

We have opened ourselves up for investment to:

  • Grow our reach;
  • Support more Canadian investors & founders; and
  • Offer an equity ownership opportunity to our community.

This community raise is an opportunity for you to own a part of Equivesto and join our growing family of #EquiBackers!

Highlights

⚡ Rapidly growing community of over 3000 members;

💸 Facilitated over $3.5M in investment for our clients;

🏃 Ran over 20 campaigns, with many more launching soon;

🌎 Global interest in Angel Investing & Venture Capital is at an all-time high;

🔥 Fueling homegrown startups and locally meaningful businesses;

🔐 Key focus on Security, Compliance, and Safety;

🤝 Accessible & Inclusive platform for ALL founders & investors;

💻 Fully digital investment process;

⛔ High barriers to entry for competition; and

🍁 Proudly by Canadian, for Canadian.

Problem

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Angel Investment, Venture Capital, and the entire private markets have historically been considered the exclusive domain of the wealthy and networked. The higher risk nature of early-stage investing left regulators in Canada to prohibit the general public from investing in private companies. This was, in part, due to the uncertainty of returns and lack of liquidity from this type of investment, locking in large amounts of capital for significant periods of time with no guarantee of ever getting your money back. 

However, the private markets have also been where most of the wealth in the world has been created, with the largest returns seen for the earliest stage investors. By restricting private company investment to only the wealthy, founders are limited to seeking critical capital form a small pool of high net worth people. This dynamic, compounded over time, has caused an imbalance in the demographics of founders that get funded, with minority groups at a significant disadvantage when raising capital. 

 

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Opportunity

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Equity Crowdfunding, also known as crowd investing or community investing, is a new type of fundraising that allows private companies to raise money by issuing small portions of ownership to a large group of investors. This allows many more people to participate in the higher risk, but higher return private investment market. Now, smaller investors can participate in venture deals which had traditionally required high minimum investments and limited to those who are considered wealthy.

By working with a registed funding portal, founders can access a larger pool of potential investors and covert community relationships into backers. Customers, fans, followers, and extended community members can now be early-stage investors in a private business, sharing in the risk and reward.

Another rapidly growing area of interest is self-directed investing. Over the pandemic, interest in investing in the public markets had skyrocketed with 2.3M new self-directed investment accounts being creating in Canada in 2020 alone. From the total pool of retail investors 11% had risk tolerances appropriate for private investing. This growing base of self-directed retail investors interested in higher risk opportunities are ideal for equity crowdfunding and creating new sources of funding for startups and small businesses.

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Solution

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Equivesto provides a common meeting ground for private Canadian startups & small businesses looking to raise capital and Investors seeking new opportunities.

Investors have access to a curated list of active deals that they can review and invest in, hassle-free and with no-pressure. Starting with as little as $100 CAD, investors can make venture investments and steer their capital towards supporting businesses they believe in.

Founders can raise between $25,000 CAD and $1,500,000 CAD for their growing business through Equity Crowdfunding. We provide a suite of capital raising tools, processes, and strategies that help founders effectively identify and win over equity investors and convert community into backers.

 

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Traction

Since our launch in September 2020, we have run over 20 campaigns, raising over $3.5M from thousands of investors. The growth of interest in equity crowdfunding has exponetially increased in recent months. Community rounds are quickly becoming a common consideration for companies who have active communities and want to build with the public as stakeholders.

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See our full list of Success Stories here

Network

A key part of our success so far has been thanks to our amazing partner community. With their help, we are able to serve many more founders and investors. We look forward to further developing our relationships with our partners and creating new partnerships with other members of the ecosystem.

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Equal Access

At Equivesto, we provide the tools to help underserved individuals get equitable access to the private investment market.

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Equity Crowdfunding allows private companies to raise money by issuing small portions of ownership to a large group of investors. This allows many more people to participate in the higher risk, higher return private investment market.

This distribution of opportunity opens avenues for investors and founders alike, and has the potential to change the ecosystem for the better. Through equity ownership, a diverse and inclusive investor base can help drive community values into business decisions. Social and environmental impact become essential factors for businesses who wish to raise in this way.

 

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The Impact

TRIPLE BOTTOM LINE

The distribution of opportunity to a broader audience opens avenues for investors and companies alike and has the potential to change the ecosystem for the better. With more participation, factors such as community and environmental impact become more important, and a required stakeholder for businesses who wish to raise in this manner. Financial return is no longer the only metric to value a company’s success, with the equal weight to People, Planet, and Profit (aka. The Triple Bottom Line).

 

Support businesses that mean something to you.

INVESTORS

In a world filled with Mutual Funds and Robo-advisors, we often forget the importance of knowing what values we support with our capital. What automation provides in convenience, it lacks in transparency. On Equivesto, you can speak with your dollars and align them with your beliefs by backing companies that are doing things important to you.

 

You’re More than 10x.

FOUNDERS

10x (10 times) has widely been known in the industry as the minimum return expectation for Angel Investors and Venture Capital investments. This form of unrealistic pressure can be crippling to many businesses and ignores equally important social and sustainable factors. On Equivesto, you are more than an expected return and your investors chose you because they value what your value.

Use of Funds

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*Considering the maximum raise of $1.5M is met.

 

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*Considering the maximum raise of $1.5M is met.

Investment Opportunity

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*Considering the maximum raise of $1.5M is met.

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Exit

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Management Team

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Perks of Investing

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Offering Terms

NOTE: You will need your Bank Account Number, Transit Number, and Institution Number to Invest.

Pre-money valuation (before investment received): ~$15,000,000

Minimum Raise: $100,000.00 for 200,000 Class ECF Non-Voting Common Shares for 0.614% at $0.50 per Non Voting Common Share.

Max Raise: $1,500,000.00 for 3,000,000 Class ECF Non-Voting Common Shares for 9.217% at $0.50 per Non Voting Common Share.

Minimum Investment Amount: $500.00

Securities offered: Class ECF Non-Voting Common Shares

NOTE: There is no minimum raise amount for this Offering Memorandum.  

Please review the Offering Memorandum, Shareholder's Agreement, and Amendment to the Articles of Incorporation attached to the campaign page to see the detailed rights of these securities.  You will need to create an account to see attached documents. 

04/12/2022
Project launched

04/13/2022

Events1.png

Live Webinar: Meet the Founders + Q&A

Equivesto will be hosting a live webinar on Friday, April 22, 2022 (12pm-1pm EST) to introduce you to our founders, Alexander Morsink & Ryan Correia, and answer any questions you may have about our active community raise.

Please RSVP with the following link >> Register Here

Read More

04/14/2022

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Over 100% Funded: Minimum Target Reached

We just hit our minimum goal in the first 48 HOURS! 

Thank you to all our eager community investors who signed up early to support us on the first two days. Your efforts have guaranteed us a successful campaign and now we get to see how far we can take this together.

At over 100% funded, we will continue to accept investment all the way up to $1.5M or our campaign close date.

Read More

04/23/2022

Live Webinar: Meet the Founders + Q&A Recording

Thank you to all who attended the Meet the Founders + Q&A Live Webinar, a link to the event's recording can be found here: https://youtu.be/-7wvD0HI9gA

We look forward to seeing you at the next one!

Read More

04/26/2022

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Over 150% Funded

We passed 150% of our funding goal - thank you everyone!

With our campaign ramping up, it's important to remember that investing in Equivesto is more than helping propel our business. It's about supporting the future of Canadian founders and investors, and helping develop a better funding ecosystem for all.

Read More

05/23/2022

Live Webinar: Ask Us Anything Recording

Thank you to all who attended the Ask Us Anything Live Webinar, a link to the event's recording can be found here: https://youtu.be/MNrASAmjjHs

Read More

FAQs

What is Equivesto?

Equivesto is a licensed Exempt Market Dealer and Equity Crowdfunding portal that enables everyday Canadians to invest in vetted startups, small businesses, and real estate opportunities, starting at only $100 CAD. Through our service, businesses can raise up to $1.5M from their customers, fans, followers, and extended community members. It also happens to be this very platform you are on!

What is an Exempt Market Dealer?

An Exempt Market Dealer (EMD) is a fully registered securities dealer who engages in the business of trading in prospectus exempt securities, or any securities to qualified exempt market clients.

Watch this video to learn more about an EMD.

 

Is Equivesto an EMD?

Yes! In order to act as the platform and broker the deals between the companies raising money and the investors, we need to be licensed as an Exempt Market Dealer. Equivesto Canada Inc. is licensed as an Exempt Market Dealer under applicable securities legislation in Ontario, Alberta, British Columbia, and Nova Scotia to ensure that we meet securities regulations, protect investors and companies, and can be monitored.

You can validate our license here.

Who can invest?

Anyone who is a Canadian Permanent Resident living in an eligible province and is over 18 can invest.  Equity crowdfunding investments are exciting but also risky, and aren’t a good fit for everyone.  Equivesto is mandated to get to know each customer and determine whether equity crowdfunding investments are a good fit for them before allowing them to proceed.

 

Eligible Provinces

Investors from:
- Ontario
- British Columbia
- Alberta
- Nova Scotia 

Can participate on Equivesto.

 

Why are there eligible provinces? 

Each province's equity crowdfunding rules are controlled by their own Securities Regulator.  Not all securities regulators agree, an as such, Equivesto can only work with certain provinces at this time.

 

How do I get started?

Getting started on Equivesto is quite simple.  Click the 'Sign Up' button at the top of the page.  Once that happens, you will be directed to the signup page, where you provide your email address and password.  Once we verify your email, we send you the signup forms, which take about 5 minutes to complete.  Once your forms are completed, we take a few days to review your information to confirm that equity crowdfunding investments are a good fit for you.  We may call you during this period if we have any clarifying questions.  After you are approved, we let you know your investment limits and give you direct access to all the great companies available for investment on Equivesto.  Our team is available at all times to answer any questions.  

Is there an investment minimum and maximum?

Equivesto’s has elected to set our minimum subscription amount at $500 CAD.

 

Investment maximums are set for each individual as part of your signup process, however, there are regulated investment maximums for each investor account.  

  • Retail Investors: $5,000 per company and $15,000 per year

  • Eligible Investors: $10,000 per company and $30,000 per year

  • Accredited Investors: No Investment Limits

  • Permitted Clients: No Investment Limits  

Learn more about Retail Investors, Eligible Investors, Accredited Investors, and Permitted Clients below.

 

1) Retail Investor

Anyone over the age of 18 with either Canadian citizenship or Permanent Resident Status could be categorized as a Retail Investor. In the finance world, the word retail is added to investor to refer to the general public. Any client who is legally able to invest but does not qualify as an accredited investor, permitted client, or an eligible investor is a retail investor.

Retail Investors have a maximum Investment limit of $5,000 per company, $15,000 per year.

 

2) Eligible Investor

An eligible investor includes but is not limited to either:
1. A person whose net assets, alone or with a spouse, in the case of an individual, exceed $400,000.
2. A person whose net income alone before taxes exceeded in each of the 2 most recent calendar years and in the current year as well $75,000.
3. A person who with a spouse, whose net income, exceeded in each of the 2 most recent calendar years and in the current year as well $125,000.
4. A partnership of which all partners are eligible investors, or accredited investors.

Eligible Investors have a maximum investment limit of $10,000 per company, $30,000 per year.

 

3) Accredited Investor (AI)

This type of investor includes large financial institutions, government agencies, angel groups, charities, family trusts as well as certain individuals.  High net worth individuals make up the majority of Accredited investors.  We have further defined Accredited Investor below as either an individual AI or a non-individual AI.

Accredited Investors do not have maximum investment limits.

Individual AI

A wealthy person who passes a financial asset test. A summarized version of the test is that the individual needs either:

  1.  A minimum of $1,000,000 in net assets either alone or with a spouse (excluding their primary residence and other liabilities) . 

  2. Have had for the past two years and a current ongoing salary of over CAD 200,000 alone, or CAD 300,000 when combined with a spouse.  

  3. A minimum of $5,000,000 in assets either alone or with a spouse.  

  4. To be an individual registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer as qualifies as an individual AI.  

Non-individual AI

A corporation who is regulated by either a federal/provincial/municipal government, a federal act, an SRA, or another regulatory entity. Other legal entities that are an AI are: investment funds, angel or VC groups or a family trust set up by an AI where most of the beneficiaries are AI as well.

Am I responsible for identifying as an AI?

Yes, but don’t worry, Equivesto verifies whether an investor is accredited or not. As part of the sign up process, we ask individuals identifying as Accredited Investors to provide documents to support their status as an Accredited Investor. We keep all verification records which you can access for your reference.

 

4) Permitted Client

A permitted client is usually corporations who are regulated by either a federal/provincial/municipal government, a federal act, an SRA or another regulatory entity. Other legal entities that can be a permitted client are investment funds or angel or VC groups comprised of permitted clients. An individual can be a permitted client if they have a minimum of CAD $5,000,000 in net assets (excluding their primary residence and other liabilities).

Permitted Clients do not have maximum investment limits.