Why we are reinventing venture capital

For this campaign we chose the tagline ‘Reinventing venture capital’. So, do we think that equity crowdfunding will be displacing traditional venture capital? No, traditional venture capital is not going anywhere anytime soon, and we don’t want it to. However, these traditional sources of seed capital have their challenges which we believe we can tackle.

Firstly, venture capital is difficult to access for early-stage startups since their business may not have gained enough traction yet. So these startups typically have to turn to their family & friends, and angel investors, and that pool of capital is limited.

Secondly, traditional venture capital is only available to a small group of wealthy individuals and institutional investors that have access to investing as limited partners in these venture capital funds. So, the general public doesn’t have access to investment opportunities in these VCs.

Thirdly, there is a lack of diversity in the early-stage funding and investing marketplace. For example, only 3% of venture capital money goes towards female founders. This number is even lower for female founders of colour. We want to make raising capital more accessible to a diverse group of founders who represent the true landscape of Canadian talent and entrepreneurs.

FrontFundr, as a fully registered exempt market dealer from coast to coast and operating its own technology platform, has made investment opportunities in early-stage companies accessible to the general public. We are bringing a new pool of funding to the venture capital table, from the public. And as mentioned before, we estimate there to be at least another $2 billion per year in funding available, in addition to the existing traditional pool of capital of $3 billion. So we are not displacing traditional venture capital, we are complementing it by unlocking this new and massive pool of funding and making investments in early-stage companies accessible for everyone.

That is why we believe FrontFundr is reinventing venture capital.

If you haven’t invested yet and would like to become a co-owner in Canada’s leading equity crowdfunding platform, go to our campaign page to learn more and complete your investment.