One of those weekends when I decided to troll the internet for money knowledge (because that's my idea of fun), I came across the concept of Equity Crowdfunding and was intrigued. Sounds like a good idea to add to the high-risk section of my portfolio. Some more digging and I learnt a few more facts that I'd like to share
NO CANADIANS PLEASE!
There are a few big, well-established names like EquityZen, SeedInvest and Crowdcube. Guess what they have in common? No Canadian residents can purchase investments on their website due to our regulatory requirements. Bummer! EquityZen does give access to shares of some of the big tech companies that are not yet publicly traded.
What is equity crowdfunding in Canada? Read here. It's geared toward Ontario but applicable Canada-wide.
List of portals: This archived version is a good starting point though some of the portals are already consigned to the internet graveyard. Here you can find a list of registered portals in Quebec
Time to pause this post for a quick disclaimer: This is not investment advice. Equity crowdfunding comes with a higher risk for investors and is best reserved for experienced and/or accredited investors. A lot of homework needs to be done before diving into this.
Ok, disclaimer's in place.
What equity crowdfunding opportunities are available in Canada? I see two worth considering: vested and frontfundr.
A casual perusal of their current offerings tells me there's nothing I'd invest in right now.
What's my future strategy? There's a certain percentage of my portfolio (5% in total) that I keep for weird/higher risk investment ideas. This is where things like gold and cryptocurrencies are allocated funds from. I intend to watch the 2 Canadian websites closely and see if there's any company that'll serve as my first foray into the world of equity crowdfunding.
Do you have a portfolio allocation for high risk plays?