TORONTO, ONTARIO--(Marketwire - Oct. 12, 2012) -
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Media Release: Attention News Editors
The National Crowdfunding Association of Canada (NCFA Canada) is a newly formed Canadian non-profit organization created to fill a need to unify a crowdfunding voice of the various industry groups, associations and affiliations into a single national organization and to provide a forum and network for all businesses, industries and stakeholders across Canada interested in crowdfunding.
Internationally, forms of crowdfunding including donation, pre-purchase, lending and equity-based models have already been legally permitted in countries such as Australia, the UK and Europe. On April 5, the JOBS Act (Jump Start on Business Start-Ups Act) was approved in the United States paving the way for businesses to legally raise funds from the general public over the internet via crowdfunding portals (CFPs).
The crowdfunding industry is exploding with entrepreneurs, investors, portal operators, third party service providers and experts from around the world who are all jockeying for position to take advantage of a promising and brand new fundraising channel for small to medium sized enterprises (SMEs) and creative or social projects. In 2011, the worldwide crowdfunding industry facilitated over one million successful fundraising campaign offerings equivalent to $1.5 billion dollars. As of May 2012, globally there were a total of 452 CFPs with analysts projecting the crowdfunding industry to be worth $2.86 billion by the end of 2012, according to Massolution's industry report released in April of this year.
"The crowdfunding revolution is picking up steam in Canada, and it's time to get on board," said Craig Asano, Founder and Executive Director of NCFA Canada. Asano further states that "Without a vibrant and dynamic 'made in Canada' crowdfunding solution, we risk losing many of our brightest and best minds to the US and other countries and our economy will suffer as a result. Entrepreneurs are the grassroots lifeblood of Canada's economy and they play a pivotal role in a much larger capital formation eco-system."
Initially, NCFA Canada's focus will be:(1) educating businesses, entrepreneurs, investors, the public, media and regulatory bodies on crowdfunding trends, initiatives, regulations and emerging best practices; (2) developing programs to assist, educate and support crowdfunding communities through webinars, conferences and events; (3) educating its members and the public in identifying and reporting fraud in the crowdfunding industry; (4) providing networking opportunities to connect with crowdfunding professionals in the industry; and (5) advocating for the growth of a collaborative and dynamic crowdfunding industry in Canada.
"Collectively, we need to increase Canada's ability to fund innovation, said Marty Gunderson of Gunderson and Associates, a member of the NCFA Canada Board of Directors. "This is about economic freedom - freeing Canadians to invest in projects and businesses that they believe in. While crowdfunding may not have all the answers, it's a sign of hope and by all measures of success, strongly supported by local communities, organizations and industry."
Asano said, "One of our challenges is to help demystify exactly what crowdfunding is for the benefit of the general public, prospective investors, SMEs and all other interested organizations. The NCFA Canada is looking to host its first crowdfunding event in Toronto early in 2013, bringing industry and legal experts to talk about best practices, regulation issues, risks, latest trends and up-and-coming initiatives."
About the National Crowdfunding Association of Canada
The National Crowdfunding Association of Canada (NCFA) was newly formed in September 2012, to fill a need to unify a national crowdfunding voice for all industries, stakeholders, and associations in Canada. The NCFA offers its members advocacy, education, support and the ability to network and connect with leaders in the crowdfunding space enabling them to plug into a 'National Crowd' and remain informed in an exciting and rapidly evolving industry. The NCFA Canada holds an independent position with membership open to the general public including interested parties such as entrepreneurs, investors, lawyers, technologists, financial advisors, regulators, educators, students and media professionals. For more information please visit www.ncfacanada.org.
Source: NCFA Canada
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