What is Crowdmatrix?
Crowdmatrix is a new way to discover, curate and invest in high-potential alternative assets online, including private equity funds, tech startups, private debt, Flow Through and real estate opportunities.
Who can invest?
For most deals, our offerings are open to accredited investors resident in British Columbia, Alberta, Ontario and Quebec. Deals may be available on a case by case basis to non-accredited investors where securities laws allow, including friends, family and business associates of the issuer. Crowdmatrix is a registered Exempt Market Dealer and may register in other provinces if justified by investor demand.
Are there any fees?
There are no fees to open an investor account or to make an investment on Crowdmatrix. Depending on the circumstances, Crowdmatrix may receive a commission that is paid by the issuer, or we may take a portion of a carried interest that is paid as a percentage of any profits realized by the investors. The carry, if any, will always be described in the details of the offering.
Crowdmatrix is a Registered Exempt Market Dealer Powered by Technology
What is an Exempt Market Dealer (EMD)?
Exempt Market Dealers (“EMDs”) are securities dealers who have undertaken a rigorous process to secure a license under provincial securities legislation in one or more jurisdictions in Canada. EMDs are subject to proficiency, capital and operational requirements. Accordingly, EMDs are managed by securities professionals who adhere to a high standard of compliance, and who will act in good faith and in the best interests of their clients.
How do we combine EMD with tech?
By bringing the investing process online, we are able to streamline the investment process and replace the traditional means of printing, copying and faxing documents to open accounts and close deals. Furthermore, we create a more transparent investment opportunity by providing investors with online access to relevant information and documents, and a forum to ask questions and seek clarification. We are doing for private investing what discount brokers did for public investing.
How Investing Works
The entire investment process has been brought online and is powered by our streamlined digital investment framework, making it easier and more convenient than ever to add alternative assets to your investment portfolio.
1
Explore Opportunities
Explore diverse investment opportunities on Crowdmatrix, including details regarding the market opportunity, management team, traction and deal terms. When you find a suitable opportunity, specify your desired investment amount, which is contingent on the deal successfully raising the minimum target, and is only collected when the deal successfully closes.
2
Open Digital Account
Open your digital investor account and complete our online Know-Your-Client form. Once reviewed and approved by our registered dealing representatives, we will assess the suitability of the investment for your investing profile. Upon approval we maintain the information to ensure that future investments are seamless to the investor.
3
Become An Investor
If the deal successfully meets its threshold, documents are presented to you for online signature and funds collected to close the deal. You can use Crowdmatrix to track your investment, get quarterly reports on your holdings, and receive updates from your new portfolio investment.
Types of Investments Currently Offered
Opportunities are curated by Crowdmatrix’s experienced investment committee, and include offerings by high growth companies, private equity and venture capital funds, private debt and real estate companies and Flow through tax savings.
Private Equity
Institutional investors have long used private equity as a means to diversify their portfolios and generate additional returns. However, individuals seeking the same opportunities have been prevented from doing so due to a lack of access or to prohibitively high, six figure minimum buy-ins. Crowdmatrix is changing this equation by providing easy investor access to Canadian venture capital, private equity and hedge funds, many of whom target annualized returns in the 20-30%+ range. We’ve made the investment thresholds low and the process simple, driven by our tech-enabled platform.
Tech Companies
Investing in high potential tech companies is an exciting way to join the burgeoning Canadian tech ecosystem. However, with so many startups being created and seeking funding, it can be very difficult and time consuming to find and invest in growing tech companies. Crowdmatrix’s vetting process makes it easy to identify top startups, and our platform provides investors with information and access through a streamlined digital investment framework.
Flow Through Tax Savings
A tax assisted investment type that results in investors typically receiving an amount that is nearly equal to their investment amount that can be written off against other income. Flow Through shares are a unique aspect of the Canadian Income Tax Act that have allowed countless junior resource companies in Canada to raise early stage financing. By investing in flow through, investors will receive diversified exposure to an actively managed portfolio of exploration companies.
Real Estate
Investing in real estate provides a healthy income stream from property. The great thing about real estate is it’s simple to understand and can enhance the risk and return profile of an investor's portfolio. Real estate offers competitive risk-adjusted returns, attractive income streams and can also enhance a portfolio, by lowering volatility through diversification.