Security Regulations Startups Need to Know with Alex Morsink of Equivesto
Show Notes
In this insightful episode of the Startup Talk Podcast, host The Startup Coach sits down with Alex Morsink, Managing Director of Equivesto, to discuss security regulations every Canadian startup must understand when raising capital. This episode unpacks complex topics such as prospectus exemptions, the difference between private and public companies, and the role of equity crowdfunding in modern fundraising.
Key Takeaways:
• What Are Security Regulations?: A security refers to an investment, including shares in a private company. Security regulations govern how startups raise funds legally.
• Key Prospectus Exemptions:
• Private Issuer Exemption: Allows raising money from friends, family, and accredited investors without regulatory filings, provided you have fewer than 50 shareholders.
• Other Exemptions: Even if you exceed 50 shareholders, options like the accredited investor exemption and equity crowdfunding are available.
• Misconceptions About 50 Shareholders:
• Having more than 50 shareholders does not make your company public or require audited financial statements—it simply disqualifies you from using the private issuer exemption.
• Navigating Equity Crowdfunding:
• Alex highlights how equity crowdfunding offers startups a new legal avenue to raise capital while complying with security regulations.
This episode is a must-listen for startup founders navigating Canada’s regulatory environment.
Featured Guest: Alex Morsink
Alex Morsink is the Managing Director of Equivesto, an equity crowdfunding platform empowering startups and small businesses to raise capital while adhering to security regulations. With expertise in the intersection of finance and technology, Alex brings actionable insights to help startups fundraise effectively.
Resources Mentioned:
• Equivesto Learning Center: Explore detailed guides on prospectus exemptions and equity crowdfunding at Equivesto Learning Center (https://equivesto.com) .
• Securities Laws Overview: Understand the basics of Canadian securities regulations at Equivesto (https://equivesto.com) .
Contact Information:
• Alex Morsink: LinkedIn Profile (https://www.linkedin.com/in/alexander-morsink-80003433/) | Twitter @AlexMorsink (https://twitter.com/AlexMorsink)
• Equivesto: Website (https://equivesto.com) | LinkedIn (https://www.linkedin.com/company/equivesto/) | Twitter @EquivestoInc (https://twitter.com/EquivestoInc)
Tune In:
Listen to the full episode to gain an in-depth understanding of security regulations and how to leverage them effectively for your startup’s fundraising journey. Subscribe to the Startup Talk Podcast for more episodes packed with entrepreneurial insights.
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Ontario Startup Ecosystem Links
• Ontario’s Startup Ecosystem (https://torontostarts.com/canada/ontario/)
• Startup Funding in Ontario (https://torontostarts.com/canada/ontario/startup-funding/)
• Angel Investors in Ontario (https://torontostarts.com/canada/ontario/angel-investors/)
• Ontario Incubators and Accelerators (https://torontostarts.com/canada/ontario/incubators-accelerators/)
• Venture Capital in Ontario: Top Firms, Sectors, and Funding Strategies (https://torontostarts.com/canada/ontario/venture-capital/)
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