The Ontario Securities Commission will roll out initiatives through its TestLab program to make it easier for angel investor groups, early-stage startups and non-accredited investors to participate in capital raises.

(The Logic)

Talking point: Under the pilot projects, angel investor groups will be permitted to collect compensation of up to five per cent per transaction for connecting startups seeking capital with the group’s members. Early-stage startups will be permitted to market the terms of fundraising offerings to prospective investors online. The OSC will also make it easier for companies to raise funds from investors who have financial education or experience, but don’t have enough money to be considered accredited investors. Reducing “undue burden for market participants” is one of the goals of the OSC’s six-year strategic plan, released last week. The regulator had also updated its vision to include a goal of making Ontario’s capital markets inviting and thriving, as well as secure.