Chris MacIntyre
Chris MacIntyre, Lawyer, McInnes Cooper
Danielle Daigle
Danielle Daigle, Lawyer, McInnes Cooper

Access to sufficient capital to fund operations, research and development, and other costs is a key challenge for start-ups and for some small and medium sized businesses. There are several typical sources of capital from which start-ups and SMEs can choose. Equity-based funding can be a bit tricky to navigate because of the securities law requirements that include filing a prospectus, a time consuming and costly process. The key for start-ups and SMEs is to fit the equity issuance into an exemption from the prospectus requirement – and a new alternative just became available. In May 2015, several Provincial securities regulators implemented a new start-up crowdfunding exemption, creating another option for start-ups and SMEs to raise equity capital in those Provinces.

To learn about the three key sources of capital for start-ups and SMEs, the three key sources of equity-based funding – two traditional and the new equity crowdfunding option – and some pros and cons of each, read McInnes Cooper’s Legal Update: New Kid on the Block – Crowdfunding Joins Traditional Equity-Based Funding Options for Start-ups & SMEs. You can read more of McInnes Cooper’s Legal Publications at

McInnes Cooper prepared this article for information; it is not legal advice.  Consult McInnes Cooper before acting on it. McInnes Cooper excludes all liability for anything contained in or any use of this article. © McInnes Cooper, 2015.  All rights reserved.

About the authors:

Chris MacIntyre is a lawyer with McInnes Cooper. As a member of the firm’s corporate finance and securities team, he advises clients on transactions such as securities offerings, private placements, mergers and acquisitions, as well as corporate governance and regulatory compliance matters. And, of course, equity financing and crowdfunding. You can reach Chris at

Danielle Daigle is a lawyer with McInnes Cooper whose practice is focused on corporate finance and securities team. Danielle regularly represents public companies, universities and colleges, and medium sized businesses, including advising start-up companies and investors on venture capital financings. You can reach Danielle at