Canada: Crowdfunding For Beginners – New Book

Last Updated: October 22 2014
Article by Brian P. Koscak

How to Raise Money for Start-Ups, Early Stage Enterprises, Charities and Non-Profits

Late this summer, a new crowdfunding book was released by serial author Iain Williamson of Learn2succeed.com Incorporated. I have read the book and find it an interesting and easy-to-read book of about 156 pages on crowdfunding for beginners. It is perfect for those who are just wading into the subject and want a simple book that looks at equity and non-equity crowdfunding from a global perspective including the United States, Canada and the United Kingdom.

I have the privilege of asking author Iain Williamson a few questions about his new book which covers the current 'state of play' so readers can quickly get a grasp on what's in it for them.

Q. 1 Why did you write the book?

Actually, I did not just wake up one day and want to write a book about crowdfunding. For over 20 years, I have been writing a whole series of books on small business financing in Canada which I update every year. In certain chapters in different books I found myself writing about crowdfunding, For example, I wrote about debt crowdfunding in my book on bank and debt financing and equity-crowdfunding in my books on raising venture capital and going public. However, I came to realize that my writing was a little superficial. So, I decided to take the bull by the horns and delve into the subject in more detail. Once I did that, I realized that I had enough material for a stand-alone book on crowdfunding.

Q.2 What makes you qualified to write about crowdfunding?

Well, there are no university degrees on crowdfunding; at least not yet! Actually, I worked as a financial analyst in the stockbrokerage business for five years so I guess that's where I acquired the skills to pick companies apart to see how they tick. In essence, I used the same approach in trying to get a handle on the concept of crowdfunding.

Q.3 Obviously, Learn2succeed.com isn't your name, so why the pseudonym?

Good question! I had incorporated the business name quite a long time ago, even before the dot com bubble burst. I thought it was a great name for titles dealing with the digital age; a little like the Dummies series of books but more focussed. Also, it gives me a certain amount of anonymity so I can say nasty things about groups of people I don't like without them spitting in my eye when I walk down the street!

Q.4 In that regard, your book contains some sharp criticism for securities regulators.

You're darned right! They're not at the top of my fan list! Basically, they don't get it! When there was bi-partisan Congressional support for the Jobs Act, everybody was jumping up and down with joy and predicting how many gazillion new jobs could be created when small businesses were able to raise tons of money in a tight credit market dominated by Scrooge bankers. What they forgot to take into account were the boring regulators hiding behind their mountains of red tape and ready to crush any innovative idea that they couldn't get their heads around!

Q.5 Why such harsh comments?

You have to go back to the horrors of the 1929 Stock Market Crash when most investors lost their shirts, pants, underwear and everything else. In the aftermath, the American Government decided that it was time to protect the people from themselves. So, the Securities and Exchange Commission was born some years later and set up rules and regulations which heavily restricted the average Joe's ability to invest in new companies unless he or she had enough assets. The same goes for Canada.

Q.5 So what's wrong with that?

Well, the average Joe was denied, and still is denied, access to the private capital markets which is absurd. Joe can go down to the racetrack and blow his financial brains out on some nag that wasn't fed enough oats that morning and Joe doesn't have to declare his net worth to the bookie before he lays his bet. Likewise, he could go to Vegas and blow his brains out. Moreover, the government will always be all to happy to take his money if he buys a ton of lottery tickets as well. Meanwhile, the poor sod who's got a great business idea can't raise two cents to get his show on the road.

Q.8 Okay, so where does all this lead?

As my book shows, crowdfunding has definitely taken off for charities and there are also some spectacular success stories involving rewards-based crowdfunding. When it comes to personal loans, crowdfunding is showing great promise and it appears to be gaining some traction for raising business debt. In fact, The Lending Club is in the midst of an IPO! The challenge, however, lies with equity-based crowdfunding where shares are sold to the public. The Brits have come up with a way to do it but, for the most part, the U.S. and certain provinces in Canada are bogged down in a quagmire of regulations.

Q.9 Is there a solution?

Absolutely! We have to put some firecrackers under the seats of the regulators and get them to think outside of the box! Now, that's a tall order but it can be done and my book suggests some practical ways to get the show on the road. I encourage people to buy a copy of the book, obviously since I wrote it and it pays the bills, and join the debate!

Q.10 So what topics are covered by the book

The titles of the various chapters are set out below so you have an idea of what the book's about.

Introduction Where Crowdfunding Fits into the Big Picture

Chapter 1 Preparing Yourself for the Equity Crowdfunding Adventure

Chapter 2 Issues You May Encounter When raising Equity-based Crowdfunding

Chapter 3 The U.S. Equity Model for Crowdfunding

Chapter 4 Crowdfunding in Canada

Chapter 5 Crowdfunding in the United Kingdom

Chapter 6 Crowdfunding Down Under

Chapter 7 The Crowdfunding Loan Model

Chapter 8 The Crowdfunding Rewards Model`

Chapter 9 Raising Money for Charities & Non-profits

Chapter 10 The Future of Crowdfunding

Q.11 So how can one order a copy of your book?

That's easy. The book can be purchased securely online at http://crowdfundingforbeginners.biz/ or from our regular site at www.ProductivePublications.ca. Both sites are set up for purchases in $CAD using VISA, MasterCard or AMEX.

Americans can purchase from our $USD site at www.ProductivePublications.com using VISA or MasterCard in $USD.

Purchases can also be made to our order desk toll-free for US and Canada at 1-(877) 879-2669.

The title is also listed on www.Amazon.ca and www.Amazon.com

Info about the Learn2succeed, myself, the author of the book and Productive Publications can be found by clicking the links at the bottom of the intro page at http://crowdfundingforbeginners.biz/

Concluding thoughts

Thanks Iain for your candour and for writing a book for investors, companies and others who want a non-lawyer, non-technical book about crowdfunding.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Topics
 
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions