Canadian Start-ups locked out of funding source – looking to capitalize on
growing popularity of crowdfunding for creative or entrepreneurial endeavors.

Ottawa, ON  October 16, 2012 – Ideavibes founder and CEO, Paul Dombowsky, and CATA (Canadian Advanced Technology Alliance) CEO John Reid, released the results today of a survey they collaborated on to understand Canadians’ attitudes towards crowdfunding and their willingness to participate as a funder or a start-up / social enterprise seeking funding.

Crowdfunding describes the collective cooperation, attention and trust by people who network and pool their money and other resources together, usually via the Internet, to support efforts initiated by other people or organizations. Crowdfunding occurs for any variety of purposes from disaster relief to citizen journalism to artists seeking support from fans, to political campaigns, to funding a startup company, movie, or small business. Crowdfunding is a form of crowdsourcing.

Paul Dombowsky, said, “the results of the survey show that there is both a desire and need for start-ups to access crowdfunding for start up funds. Over 65% have considered crowdfunding but the lack of a Canadian friendly platform has been getting in the way.”

He added, “The fact that friends and family (in our survey) made up almost 50% of the start-up funding shows that people are laying it on the line to start their businesses. We know that savings rates are declining and home values are under pressure so it is concerning that these sources of capital may be less available and could further hinder entrepreneurs from getting their start.”

CATA CEO, John Reid, noted, “Given that only 15% of respondants have participated as a funder in a crowdfunding campaign in the past, and only 12% as a fund seeker, the delta between awareness of crowdfunding and actual participation is fairly strong.”

The Survey sponors admit that the respondants skew towards the high tech and business community and that overall awareness of crowdfunding and the challenges for startups in Canada to use it as a funding source is likely to be much lower.

Reid concluded, “Canada is out of step with Europe, and with the U.S. in its recent move to legalize equity based crowdfunding to enable businesses to raise up to $1 million via online “funding portals. We need to adopt Crowdfund Investing to allow the nation’s emerging, small and medium sized companies to keep up with the pace of change.  Canadian start ups are simply locked out of this funding source.”

Infographic of results from the survey: http://blog.ideavibes.com/2012/10/15/crowdfunding-survey/

For more information about crowdsourcing or to arrange a talk or workshop with your organization, please contact [email protected] and we would be happy to accommodate.

Download PDF