Ontario’s New Investment Rules: A Game Changer for Early-Stage Companies
There are exciting developments on the horizon for Canada’s entrepreneurial and investment ecosystem. The Ontario Securities Commission (OSC) has unveiled new initiatives to facilitate capital access for early-stage companies in Ontario. Here are the initiatives we are excited about:
1- The Self-Certified Investor Prospectus Exemption has been extended to October 2025.
This exemption broadens the definition of “accredited investor,” enabling a larger pool of individuals to participate in early-stage financings. Under this exemption, the total acquisition cost of all securities purchased by a self-certified investor cannot exceed $30,000 per calendar year.
2- Temporary Dealer Registration Exemptions
Early-stage businesses meeting specific criteria, such as having fewer than 100 employees and being incorporated in Ontario, can raise up to $3 million without the need to register as a dealer. This exemption provides significant relief for many early-stage companies, enabling them to conduct marketing activities and reach a broader audience of potential investors.
Another exemption will allow not-for-profit angel investor groups to trade securities in early-stage businesses in Ontario without the need for dealer registration. This exemption applies as long as all group members are accredited or eligible self-certified investors and several other specified conditions are met.
Our Takeaways:
These measures come at a time where many early-stage companies are facing significant challenges capital-raising. With overall tech startup investment in Canada declining since 2021, expanding the pool of capital and risk-takers is more critical than ever.
We are optimistic that these initiatives will enhance the entrepreneurial landscape in Ontario, providing much-needed support to early-stage businesses and angel investors.
You can learn more about these initiatives on the OSC’s TestLab website .
Article by:
Alejandro Vivanco , Venture Partner at GSA Ventures
