OSC unveils measures to facilitate early-stage business funding

TORONTO — The Ontario Securities Commission (OSC) announced a series of initiatives to support capital-raising for early-stage Ontario businesses through the OSC TestLab program. The TestLab uses testing to evaluate capital market innovations and new approaches to regulation in Ontario’s capital markets.

“New and growing businesses play an essential role in our economy, contributing to job creation and driving productivity gains through innovation and competition,” said Grant Vingoe, Chief Executive Officer of the OSC.

“These initiatives reflect the OSC’s commitment to fostering the conditions for growth and innovation in Ontario’s capital markets without compromising investor protection, as outlined in our recently released strategic plan.”

These initiatives aim to enhance access to early-stage capital while upholding investor protections. They include extending the Self-Certified Investor Prospectus Exemption, dealer registration exemptions for early-stage businesses and not-for-profit angel investor groups, and simplifying reporting of distributions by early-stage businesses.

“The OSC TestLab initiatives will provide important insights as we work to support access to finance at all stages of business growth,” said Leslie Byberg, Executive Vice President, Strategic Regulation.

“The data and information collected will help inform future policymaking, including promoting access to capital for early-stage businesses in Ontario while also ensuring investor protections.”

The OSC will collect information to help evaluate these initiatives and invite perspectives from the participating businesses and investors and other key stakeholders in the early-stage capital-raising ecosystem.