CMF Crowdfunding Study

7/30/2019 CMF Crowdfunding Study

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Canada Media Fund | Fonds des mdias du Canada

Cnin in aCanaian Cntxt

Prepared by: Nordicity .m-m.

Exploring thePotential oCrowdundingin the CreativeContent Industries

At, 2012


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2 Crowdfunding for the creative content industries in a Canadian Context

1. IntroductIon 3

2. crowdundIng deIned 4

2.1 ci M 6

2.1.1 The Donation Model 6

2.1.2 The Lending Model 9

2.1.3 The Investment Model 13

2.2 Mk t 15

2.2.1 US Market Trends 17

2.2.2 European Market Trends 18

2.2.3 Canadian Market Trends 20

3. deMand or crowdundIng In canadas

tV and dIgItal MedIa IndustrIes 22

3.1 t b f iv i 22

3.2 Bf c 25

3.3 rik Bi c 27

4. IMpleMentatIon consIderatIons

or the canadIan tV and

dIgItal MedIa IndustrIes 29

4.1 ci sii l piv ii 30

4.2 t civ c i em 33

4.2.1 Certied Independent Production Funds and

other unding grants 33

4.2.2 Provincial and Federal Tax Credits 33

4.2.3 Broadcast and Distribution Partners 35

5. suMMary and conclusIons 37

aix a ci ci pm 39


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1. IntroductIonCrowdunding is an emerging alternative nancing vehicle that

has experienced a recent boom in Europe and North America,

primarily driven by recent multi-million dollar record-breaking

successes on platorms in the US. In the wake o the increased

media attention or these campaigns and recent changes to

securities laws in the US to accommodate crowdunding, this

nancing model has become more visible in Canada as well.

A number o Canadian-based crowdunding platorms have

emerged and discussion has been abundant among regulatory

and industry bodiesrom the tech sector to the creative media

sectorregarding how crowdunding ts into Canadas current

legal, regulatory and unding environment.The Canada Media Fund (CMF) commissioned Nordicity to

conduct a study on the topic o crowdunding in Canada with a

mandate to provide both an overview o the global crowdunding

phenomenon as related to the creative content industries and

also a domestic environmental scan to determine what the

demand or crowdunding might be among content creators,

how they might best leverage this type o unding and how it

might t into the broader structural environment or the creative

content industries in Canada.

Thro ugh secondary researc h, case study analys is and

stakeholder interviews (with producers, interactive digital media

(IDM) content developers, industry and regulatory bodies, andlegal and nance experts), Nordicity explored the opportunities

and challenges regarding the regulatory, nancial, social and

operational deployment o crowdunding within the Canadian

creative content environment.

The ollowing report rst provides a working denition o

crowdunding and a description o the various crowdunding

models, as dened by Nordicity. The report then goes on to

provide an overview o global market trends in crowdunding.

Finally, the report outlines the needs and key considerations rom

the perspective o content creators as well as key considerations

related to the regulatory, legislative, and nancial environment or

the creative content industries in Canada.


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2. crowdundIng deIned

This sect ion pro vides a working de in i t ion o the term

crowdunding and a broad overview description o the concept;

what it is and how it is used. The sub-sections that ollow provide

an overview o the three basic existing crowdunding models.

Crowdunding:

A wk deft

Cnin i th aiin

n thh th cctin

ma cntitin m th

na ic (knn a th

c) in th Intnt an

cia mia

1 Crowdfunding: Disintermediated Investment Banking. Brian J. Rubinton. McGill University. April, 2011.2 SEC Regulations Barricade The Crowdfunding Floodgates. Kevin Lawton. Hungton Post. November 30, 2011.

http://www.hungtonpost.com/kevin-lawton/crowdunding_b_789088.html?.

ci i i i i

i, which is the broader concept o an individual

reaching a goal by receiving and leveraging small contributions

rom many parties.1 Crowdunding is the application o this concept

to the collection o unds through small contributions rom many

parties in order to nance a particular project or venture.

Interpreted in this way, Crowdunding has existed or a long

time in the not-or-prot world, where undraising campaigns

are ubiquitous. It has also existed in what is commonly reerred

to as a riends and amily nancing round in the technology start-

up sector.

t k i i x i i

ixib ik i i ki i bii

i mmii i x

j mi fi ii. Indeed,

the social networking aspect o crowdunding is the primary

driving orce behind its success.2

From the beginning, crowdunding was based on the shared values

and relationships built between those seeking support and the

donors, oten resulting in repeat donations. By leveraging existing

communities both online and ofine, crowdunding relationships

are strengthened through increased engagement and instant

gratication via social media, as opposed to the limitations o one-way messaging with broadcast media and direct mail. While the

concept o donation is not new, the ability or online crowdunding

to engage unders on such a large scale enables it to raise large

amounts o money in shorter periods o time rom a larger pool o

potential investors.


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t -f f m

i i i i m. Two notable and

oten-cited early examples o successul crowdunding eorts

include the Hurricane Katrina disaster relie undraising campaign

and President Barrack Obamas rst-term election campaign

back in 2008.

M , i i bmi ii

mm m ii i

mi ii; ii mi, fm vi m.

Although internet crowdunding has existed in the music and lm

industries or almost a decade, it is only in the last ve years that

crowdunding in the media industries has gained momentum.3

tii, i i i m vm -f, i j (another

key characteristic o crowdunding being that it is an ex ante orm

o nancingmeaning that sponsors, backers, customers or

investors nance a project that is still in the development stage).4

As such, it has become particularly eective in projects where

individuals have an anity or the cause or or the creative team

involved. Acting as a social media platorm in their own right, some

crowdunding platorms acilitate a world o communities where

individuals can und their interests and passions.

t m iv fi

bi fi j,

b v iiz iv.Producers o all sizes have increased their access to nancing,

contributing to the democratization o content production.

Increasingly, new entrants have the potential to be recognized and

rewarded or their crat, where they may not have conventionally

been able to secure unding or distribution or their projects due to

traditional value chain barriers.

ci iq i vii

bivii ibii

i j. The power o the investor as ambassador

is uelled by the high impact o social media, where projects or

the undraising initiative have the opportunity to go viral. Oten,

beore a production has even begun, crowdunding can generate

3Crowdfunding Plan may Open Pandoras Box for Investors. Robert J Metzler. April 16, 2012.http://hbweb.sx2.atl.publicus.com/article/20120416/PRINTEDITION/304169981.

4Crowdfunding: Disintermediated Investment Banking. Brian J. Rubinton. McGill University. April, 2011.5Putting your money where your mouse is: Crowdfunding: Artists, musicians and writers are using the Internet to aggregatelots of small donations to fund their work.TheEconomist. Sept 02, 2012. www.economist.com/node/16909869.

audience engagement through the projects investors, who will inturn become the consumers. A crowdunding network can be a

projects best source o cost-ree promotion. Investors and unders

become ambassadors o the cause, infuencing their networks

through social media and word o mouth. Indeed, due to the trust

involved in personalized endorsements, social media can be more

infuential than many promotional campaigns, committees, CRM

networks and websites. Crowdunding also allows project creators

to engage more closely and more directly with those audiences

and ambassadors, who are increasingly attracted to this type o

direct connection and deeper engagement with the development

and production process o the content they are consuming.5

As such, crowdunding is redening the relationship between

producer, investor and consumer, oten resulting in some orm

o convergence and democratization o the three. Producers

are compelled to be as open and honest as possible in their

crowdunding campaigns in order to earn enough trust rom

audiences to secure their nancial support. It is thereore in the

producers best interest to maintain higher levels o transparency

and accountabil ity in their practices. However, levels o

transparency can vary and can become the object o public

scrutiny. For example, the crowdsourced undraising campaign

behind the Invisible Children Inc., and their short lm Kony 2012,

has been criticized or a lack o transparency on expenditures.

ci vi m iv

v i m vii b

i. Through crowdunding campaigns, content creators

can crowdsource public reactions and critiques to a projects

concepts and eatures. In this way, creators are equipped with

vital inormation to help with business and editorial decision-

making that respond directly to their audiences expressed

needs and desires. Useul back-end analytics that can come

rom crowdunding campaigns include click-through rates, time

spent on the site, the amount o money raised, and the number

o contributors as well as more open-ended qualitative audience

eedback in the orm o comments, suggestions, community

promotion and viral marketing.


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2.1 ci MThree models o crowdunding are emerging or the creative

industries: The Donation Model, the Lending Model and

the Investment Model. Each model has its own unique

eatures, unctions, levels o applicability, and advantages and

disadvantages.

2.1.1 The Donation ModelThe Donation Model encompasses approaches to crowdunding

that are based on donations, philanthropy and sponsorship. It is

also sometimes reerred to as micro-patronage.

I diM, iivimkii

ibi j i xi

fi ibi. The primary driver behind

individual contributions in this model is a personal desire to support

the development and realization o a project that is in some way

meaningul to the contributor. Projects and platorms that employ

the donation model typically also use a reward or incentive system

to help stimulate contributions. Incentive rewards, gits or tokenscan range rom named recognition o contributors in the projects

credits or acknowledgements to branded merchandise or

opportunities to meet with creators and/or attend special events

related to the project such as a launch party or premiere screening

event. Typically, a range o incentives is oered or any given

project and contributors receive dierent rewards depending on

the amount that they contribute.

With its roots in philanthropy, the Donation Model is derived rom

the online donation model used by charities. The key to this model

is that while contributors might receive recognition or rewards or

their contribution, they do not receive any rights or equity in the

project. The Donation Model o crowdunding is currently the mostcommon means o crowdunding in Canada and around the world,

due primarily to securities regulations. Indeed, a recent report by

Massolution/Crowdsourcing LLC determined that donation-based

crowdunding initiatives raised the most money in 2011 at a total

$676 million (USD) rom platorms around the world.6

6Crowdfunding: $1.5B Raised, 1M Campaigns Funded In 2011; Figures Set To Double In 2012.Rip Empson. TechCrunch. May 08, 2012. http://techcrunch.com/2012/05/08/crowdunding-state-o-the-union/.


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7How Double Fine Raised $3.3 million on Kickstarter and Changed Game Financing Forever. Dave Their, Forbes.com. March 14, 2012.http://www.orbes.com/sites/davidthier/2012/03/14/how-double-ne-raised-3-3-million-on-kickstarter-and-changed-game-nancing-orever/.

Record-breaking Donation-based crowdfundingcampaign: Double Fine Adventure (Kickstarter)

Type of production/project:Digital Media (game)

Funding Target: $400,000 (USD)Funds Raised:$3.3 million (USD)

The Company:Double Fine

Based in San Francisco, and founded in 2000 by industryveteran Tim Shafer, Double Fine is an award-winningindependent games development company with a strongtrack record on different games platforms includingXBOX and Playstation.

The Story: Double Fine set out to raise an ambitious targetof $400,000 (USD) for a point and click game and behind thescenes video. On March 13, 2012 when Double Fines Kick-starter campaign concluded, the company had raised sevenand a half times that amount, reaching $3.3 million (USD),more than enough to fund the development of their game.The campaign set a precedent for how independent gamesKIVVIVKM\PMQZXZWRMK\[_Q\PW]\MVOIOQVOX]JTQ[PMZ[

Analysis: Of all genres, games arguably have the most activeKWUU]VQ\QM[IVL[]JKWUU]VQ\QM[IZW]VL[XMKQKproperties such as the phenomenally successful and persis-tent World of Warcraft. Games are interactiveand attract users who want to be members of a community

and participate in it. Double Fine recognized this communitydesire and engaged potential investors by offering themexclusive access to development forums and to brainstormwith developers. Double Fines success proves that avidgamers will pay for this privilege.

For the independent games producer, Kickstarter providesthe promise of creative freedom. Games developers thatmeet their funding targets with consumer support canmove forward without the compromise that often comeswhen working with publishers. According to Double Fine,crowdfunding democratizes the process giving developersthe freedom to experiment, take risks, and design withoutanyone else compromising their vision. Its the kind ofKZMI\QMT]]Za\PI\UW[\UIRWZM[\IJTQ[PML[\]LQW[[QUXTacant afford. At least, not until now.7


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7MPMTOWNWMNMMTMOPWMaTSMP-Ma?WUIV3QKS[\IZ\MZ0W\,WK[+]ZI\ML8IOM

Type of production/project:Documentary (Film/TV)Funding Target: $50,000 (USD)Funds Raised:$56,525 (USD)The Company: /WTLMV6]OOM\8ZWL]K\QWV[

Toronto-based Golden Nugget Productions is a relatively newKWUXIVa_Q\PW]\IVM[\IJTQ[PMLZMX]\I\QWVIUWVOUIRWZJZWILKI[\MZ[1\Q[LQNK]T\NWZVM_MV\ZIV\[\WN]VL\PMQZ

LWK]UMV\IZQM[][QVO\PMKWVMV\QWVITUM\PWLWNVIVKQVOthrough broadcasting development funding or a broadcastinglicence. They often pay to pitch before licensing executives atforums such as Hot Docs or the Banff World Media Festival.

The Story: The pitch forum at HotDocs in 2011 is the route GoldenNuggets director, Tiffany Hsiung, tookto crowdfunding in order to raisefunding for Within Every Woman(www.wewoman.org). Hot DocsForum and Market Director, ElizabethRadshaw recommended Within Every

Woman for the HotDocs curated pageon Kickstarter. Initially, Hsiungsproducer wanted to target $100,000but the company was late to takeadvantage of their 60-day fundingwindow; they did not begin to promotethe Kickstarter campaign until 30days after the campaign had been kicked-off, which is halfway through the allotted 60-day funding period imposed byKickstarter. As such, given that the producers effectively hadonly 30 days to raise their funds, they decided that a goal of$50,000 was more realistic. The $56,000 (USD) raised fallswithin the range of development funds typically offered by

broadcasters and did kick-start Within Every Woman butQ\Q[VW\MVW]OP\WVIVKM\PMN]TTXZWL]K\QWVWN\PMLWK]UMV-tary. Hsiung estimates she requires another $200,000 and isseeking a broadcasting license as well as private investment,but does not plan on starting another crowdfunding campaignNWZ\PQ[XZWRMK\


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2.1.2 The Lending Model

t li M i i imi i

i i, iivi m j

m i xi i i b i. In the

context o crowdunding, the lending model can take a number o

orms, shown below:

s!TRADITIONALLENDINGAGREEMENT standard terms are used

and there is an expectation or a monetary reimbursement

in the orm o interest. In this case, the loans may or may not

be guaranteed, depending on the crowdunding platorm

being used.

s!FORGIVABLELOAN contributions are reimbursed to the lenderonly i one o two possible conditions is met: a) i and when the

project begins to generate revenue or b) i and when the project

begins to make a prot.

s0RESALES the nished product is promised in return or the

contributors pledge. In the case o a pre-sale lending model,

the contribution amounts are determined according to an

assessment o the air market value o the product. In addition,

larger contribution amounts are typically accompanied by a

promise o more copies o the product equal to the value o the

amount o the contribution.

According to Massolution/Crowdsourcing LLC, Lending Model

campaigns tend to reach completion in hal the time it takes or

Investment Model campaigns.8 The Lending Model is similar to

micro-nancing schemes common in developing countries or

micro-lending platorms, such as Kiva, which allow individuals

to solicit and provide micro-loans to support individuals or

communities in developing countries or support small businesses.

These micro-lending platorms have helped pioneer the concept

o individual investment through micro-lending.

Lending-based crowdunding also accounted or $522 million

(USD) o the crowdunding monies raised globally in 2011, making

it the second-largest orm o crowdunding in terms o the amount

o money raised.9

8 Crowdfunding Industry Report: Market Trends Composition and Crowdfunding Platforms. Crowdsourcing.org. May 2012. P. 22.9 Crowdfunding: $1.5B Raised, 1M Campaigns Funded In 2011; Figures Set To Double In 2012. Rip Empson. TechCrunch. May 08, 2012. http://techcrunch.com/2012/05/08/crowdunding-state-o-the-union/.


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A successful DIY lending-based crowdfunding campaign:

My Million Dollar Movie (DIY Campaign)

Type of production/project:Feature Length MovieFunding Target: $1 millionFunds Raised:$1.9 million


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A record-breaking pre-sale crowdfunding campaign:

8MJJTM?I\KP3QKS[\IZ\MZ

Type of production/project: ,QOQ\IT5MLQIPIZL_IZM?I\KPFunding Target: $100,000 (USD)Funds Raised:$10,266,845 (USD)The Company: 8MJJTM


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2.1.3 The Investment Modelt IvmMmbqi

ivm, iivi iv qi i i

i fi. There are two standard sub-categories

o Investment Model crowdunding:

Securities Investment Model

shares in the company are bought by investors. In this model,

contributors would be buying ownership in the parent company

or rights in a project.

Prot or Revenue-sharing Model

a share o the revenue or prots o the project is earned by

investors, as opposed to shares in the underlying company. Thisis also known as a Collective Investment Scheme.

Typically under a crowdunding investment scheme, the investment

would be passive rather than active. In other words, investors buy

ownership or revenue or prot shares but do not have an active

role in creative or management decision-making.

The investment model is currently not legal in Canada due to

current securities laws. However, The US recently passed the

Jumpstart Our Business Start-ups (JOBS) Act, which opens

the door to investment-based crowdunding. Although the act

outlines some initial regulations related to the new law, the ull

extent o the new regulations are currently being developed by the

National Securities Regulator and will not be known until the new

law comes into eect in early 2013.

There are currently a number o platorms based in the US

and other countries that oer investment-based crowdunding

models, including SellABand.com, Appbackr, EquityCircle,

SEEDUPS and Motaavi.


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Investment Model Case Study: The Age of Stupid

Type of production/project:DocumentaryFunding Target: N/AFunds Raised:730,000The Company:Spanner Films

The Story: .IVVa)ZU[\ZWVOIVL=3JI[ML;XIVVMZTU[

LMKQLML\WKZW_LN]VL


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ci

b

m

mm

m

i fmmk - j,

vii i j m mm

iv i

m.56 In particular, documentary lms seem to be one o

the most common types o projects eatured on crowdunding

platorms.57 It is harder or television producers to use crowdunding

because the cost o producing a traditional broadcast television

production is too high or a typical crowdunding campaign.58

However, web series are very well suited to a crowdunding model

because their production cost is signicantly less than a traditional

broadcast production.59 Similarly, k

i m i xm i iiv

ii mi j, because o the project-based businessstructure o IDM content developers (much like that o smaller,

independent production companies).

ci i i iv i

jivi. Projects

aimed at niche markets are typically much harder to und through

traditional unding options. Crowdunding provides creators o

these projects with a way to access unding by directly appealing

to the audiences that would consume the product or support. In

many ways, crowdunding provides an opportunity or projects to

be created that might not otherwise have been possible.

Stakeholders seemed to show the most reluctance when

considering selling equity or giving up intellectual property rights or

their projects. M i x

i i v iv i

qi.This reluctance is most oten related to equity structures

that would complicate or even prevent additional nancing and

that could require such substantial legal maintenance to make the

project nancially unsustainable.

56Mobcaster Crowdfunds Its First TV Season. Anthony Ha. TechCrunch. March 09, 2012. http://techcrunch.com/2012/03/09/mobcaster-crowdunds-the-weatherman/. Stakeholder interviews. Conducted by Nordicity. May-June, 2012.

57 Stakeholder interviews; conducted by Nordicity; May-June 2012.58Time to Join the Crowdsourcing Trend?. Playback. Spring 2012. P. 13-117.59Time to Join the Crowdsourcing Trend?. Playback. Spring 2012. P. 13-117.


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IngredIents or a successul

crowdundIng caMpaIgn

stakh an cnay ach intif

a nm ky chaactitic that inca

th chanc a cnin camain in

cc, th inc:

CoMpellINgproJeCTThe most successul projects are

ones that manage to capture an audiences emotions and

get people excited. People need to care about and believe

in the project in order to be motivated to contribute to it.60

s!NEISTINGPASSIONATEAUDIENCE. Projects that appeal

to already existing, highly supportive and passionateaudiences (e.g. projects that deal with topics that have

strong grass roots ollowing) are ar more successul

because those audiences help support and promote the

campaign on behal o the project owner.61

s! STRONGEISTINGNETWORK. Successul crowdunding

campaigns typically start o being promoted in the

project owners network and spread rom there. A strong

existing social networking presence and network o

ollowers make it easier or creators and project owners

to leverage the power o the social networking side

o crowdunding.62

shi qi mi mi i v mi . Successul campaigns typically

result rom strong promotional eorts by the project owners

throughout the entire duration o the campaign. In

addition, the quality o promotional materials, such as a

promotional video or trailer, need to be o good quality.

The promotional materials need to inspire condence

among potential contributors that the nal product will be

worth their contribution.63

sOOD AUDIENCEENGAGEMENT Part o the appea l in

crowdunding comes rom the audiences desire and ability

to participate in the development process. Campaigns that

provide their audiences with regular updates on the projects

progress or other promotional and unding activities related

to the project will tend to be more successul.64

s#OMPELLINGCONTRIBUTORINCENTIVESTypically, tangible

goods (i.e. branded merchandise) or pre-sale copies o

a product are the most compelling incentives as well as

advanced access to the product. Unique experiences

related to the product and/or its creative team are also

good incentives.65

s! REALISTICFUNDINGGOALProjects that succeed in

reaching their unding goal tend have a goal that makes

sense rom the perspective o potential contributors. An

amount that appears too high can make it seem like the

creator either does not have a good understanding o the

cost o producing his/her project or that they are simplygreedy. A unding goal that seems too small similarly

makes it seem like the producer does not know the real

cost o producing their project and could create doubt in

a contributors mind about whether or not the project will

actually get made.66

s! CLEARLDElNED FUND ALLOCATION PLAN Projects

are more likely to be successul i the creator clearly

demonstrates why they need to raise the unds they

are asking or and how it will be used to urther their

project. Contributors need to eel condent that their

contributions will be well-used.67

60Whitepaper Presents Community Sourced Approach to Better CrowdFunding Campaigns, PRWeb, June 12, 2012,http://www.prweb.com/releases/2012/6/prweb9596475.htm; Stakeholder interviews. Conducted by Nordicity. May-June, 2012.

61RocketHub founder Brian Meece on crowd funding, Russ Martin, Canada.com, June 12, 2012,http://blogs.canada.com/2012/06/12/rockethub-ounder-brian-meece-on-crowd-unding/

62RocketHub founder Brian Meece on crowd funding, Russ Martin, Canada.com, June 12, 2012, http://blogs.canada.com/2012/06/12/rockethub-ounder-brian-meece-on-crowd-unding/ ; Stakeholder interviews. Conducted by Nordicity. MayJune, 2012.

637 Reasons Why Crowdfunding Projects Fail. Justin Kownacki. CrowdFundingHelp., January, 2012. http://crowdundinghelp.com/7-reasons-why-crowdunding-projects-ail/; Some Thoughts on Kickstarter. Celcius Game Studios. May 2012. http://www.celsiusgs.com/blog/?p=446#more-446; Stakeholder interviews.Conducted by Nordicity. MayJune, 2012.

64 Stakeholder interviews. Conducted by Nordicity. MayJune, 2012.65 http://blogs.canada.com/2012/06/12/rockethub-ounder-brian-meece-on-crowd-unding/ ; Stakeholder interviews. Conducted by Nordicity. MayJune, 2012.66 http://crowdundinghelp.com/7-reasons-why-crowdunding-projects-ail/ ; Stakeholder interviews. Conducted by Nordicity. MayJune, 2012.67 http://www.celsiusgs.com/blog/?p=446#more-446


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3.2 Bf cci mi vi i mb

bf, b i fi i, including:

s!RAISEDPROlLE A successul crowdunding campaign or

a compelling project can help raise a producers prole and

provide a boost to their reputation.

s!PROVENMARKETCrowdunding is a great way or creators to

develop proo that the concept or their project has an existing

audience and market. In the case o an unsuccessul campaign,

it provides good market eedback that a certain concept is not

viable. Beyond simply reaching the unding goal, which provides

one level o proo, analytics regarding the number o backers,contributors or pledges are invaluable in terms o estimating the

size o the projects audience. I the campaign ails to attract

attention, then creators have solid market eedback that the

project may not have an audience in its current incarnation. This

is a very important run-o benet o crowdunding as market

research is oten weak or non-existent or dicult to amass or

creative content producers.

s!UDIENCEBUILDING The unding campaign itsel and all the

promotional eorts around the campaign have the add-on benet

o promoting the project itsel among existing and potentially

new audiences. In this way, a crowdunding campaign can

help a producer reach existing audiences, as well as build and

grow new audiences or their project beore they even begin to

produce it. Producers are also excited by the direct distribution

potential behind crowdunding platorms, such as with pre-

sales-based models.

s!UDIENCEENGAGEMENT Stakeholders agree that one o the

most unique add-on benets o crowdunding is its role as a

orum where content creators can engage with their audiences

and audiences can engage with meaningul content. Audiences

are increasingly interested in the creation o the content they

consume and producers are increasingly looking or new ways

to engage with their audiences more deeply.68 Crowdunding

acilitates just that. Audiences can both contribute nancially to

a project they care about, and engage in the production process

by ollowing progress through updates rom the creators and

sharing eedback via comment eatures on the projects

crowdunding page.

s!UDIENCEEEDBACKOne o the ollow-on eects o being able

to engage with audiences through crowdunding is that content

creators can use crowdunding websites to gather important

creative eedback rom their audiences as the project develops.

For example, beyond just the proo o concept eedback that

comes rom completing a successul campaign, project owners

can gather more specic creative eedback rom contributors

or other visitors about specic aspects o the project through a

comment eature on their campaign page, which is available on

most crowdunding platorms. In addition, oering pre-release

access to content and/or the opportunity to beta-test content

as part o a unding incentive package provides creators with

instant access to good market testing eedback data on the

project beyond just knowing whether or not there is a large

enough audience that supports the concept or idea.69 It provides

an opportunity or audiences to give more specic creative

eedback on various aspects o the project.

s)NTERNATIONALSUPPORTFOR#ANADIANPROJECTSCrowdun

provides a unique opportunity to attract audiences and investors

rom around the world to support Canadian productions, thereby

expanding the market reach o Canadian-produced content. This

is a very important potential benet o increased crowdunding

eorts among Canadian screen-based content creators.70

68Time to Join the Crowdsourcing Trend?. Playback. Spring 2012. P. 13117.69 Stakeholder interviews. Conducted by Nordicity. MayJune, 2012.70 Stakeholder interviews. Conducted by Nordicity. MayJune, 2012.


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3.3 rik Bi cci m i mb i ik

bi mi i i i mi

i m among screen-based content creators in Canada.

The risks and barriers identied by stakeholders include:

s!WARENESS Crowdunding is just beginning to emerge as a

serious industry in Canada and as such, the majority o content

creators do not have a ully developed understanding o the

crowdunding environment or how they could use it.71 The

general public is even less aware o crowdunding and do not

necessarily know that they can support creative projects they

care about in this way, let alone where they can go to do so.

s!$AMAGED2EPUTATIONI a content creator starts a campaign

and does not meet his/her unding goal or receives very little

support, this is a very public ailure. There is a certain measure

o apprehension among producers about what impact this type

o public ailure could have on their reputation. Producers are

also concerned about what could happen to their reputation in

the event that they successully gather a large amount o public

support or a project but are not able to complete it or some

reason. Similarly, producers are concerned about not meeting

the expectations o their supporters once the project is complete.

s#OST AND RETURN ON INVESTMENT Many producers are

apprehensive about the costs in resources and eort thatare needed in order to manage a successul crowdunding

campaign. First, there are hard costs such as the cost o creating

promotional material (e.g. a promo video) and those associated

with producing and shipping any tangible goods incentives.

Second, there is the time and eort cost associated with

creating and promoting the campaign as well as the ongoing

eort needed to engage and update contributors on the projects

progress both during and ater the campaign. On the fip side is

the ever-present risk that the campaign will be unsuccessul and

that any time, eort or other resources invested in the campaign

would have no return.

s3KILLSGAPMany producers do not have the necessary skills

to carry out the various activities related to the campaign (e.g.

promotion, audience engagement, ulllment management

related to honouring incentives) and would need to engage

additional internal human resources or pay or external services

just to be able to manage the campaign.

s)0PROTECTIONMany Interactive Digital Media (IDM) developers

and content producers are reluctant to publicly announce the

details o a project beore production starts due to concerns

about idea thet and protecting their IP rom plagiarism.72

s$ONOREHAUSTIONThere is always the risk that i a content

creator reaches out to the same network multiple times, that

network will eventually cease to supply the necessary support.

When producers are leveraging their existing online networks

to promote their crowdunding campaigns, there is a risk that

the network will cease to be supportive i they are approached

too many times. In addition, as crowdunding grows and thenumber o platorms and projects to choose rom increases,

it will become increasingly dicult or projects to distinguish

themselves rom the masses and attract the necessary support.

s0UBLICFEAROFABUSE Amongst the investors and venture

capitalists that we interviewed, there was a shared concern

that without a regulatory ramework, the likelihood o a scam or

abuse o unds was quite high. This valid concern could become

a barrier to public engagement and unding i the regulatory

ramework in Canada does not quickly address the addition o

crowdunding nancing in a non-accredited investor context.

71 Stakeholder interviews. Conducted by Nordicity. MayJune, 2012.72 Stakeholder interviews. Conducted by Nordicity. MayJune, 2012.


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4. IMpleMentatIon consIderatIonsor the canadIan tV and dIgItal MedIaIndustrIes

There are a number o structural considerations to take into

account when thinking o how crowdunding applies to screen-

based content creators in Canada. Due to the emergent nature o

crowdunding, particularly in the Canadian market, it is dicult to

ully understand what implications there might be in the broader

legal, regulatory and unding ecosystem. That being said, there

are a ew potential implications that are commonly raised in

discussions on crowdunding in Canada.

crowdundIng platorMs: structure

There are i m,

based on what types o projects they eature:

s3PECIALIZEDPLATFORMSCertain crowdunding platorms

cater to specic industries such as music recording

(SellABand), video games (Gambitious), or independent

television (Mobcaster).

s!CTIVITSPECIlCPLATFORMS Other platorms cater

to a variety o industries but ocus on certain types o

projects (e.g. creative projects, technology or hardware

development). For example, Kickstarter only eaturescreative projects, though they can t in any number o

categories (e.g. Music, Art, Film, Video Games).

sENERAL0URPOSEPLATFORMSThese platorms have no

restrictions on what they will eature. These platorms

eature campaigns that range rom individuals soliciting

support or a medical procedure or a wedding to artists

seeking to und creative projects and technology

start-ups seeking to und the development o a new

innovative product.

a i i j i

d-i-y m i m j bi. This requires a great deal more

administrative eort rom the project creator, but allows

them to engage directly with their supporters (rather

than going through a third-party platorm) and means

that 100% o the unds raised go to the creator without

having to pay a commission to the platorm operators.

There are i i i m

i i :

s4HEMAJORITOFPLATFORMSUSEATIMEDFUNDINGROUND

typically ranging rom 30-90 days.

st a-i-m-i m. Some platorms award

any unds raised during the unding period to the project

owner (e.g. Indiegogo).

st a--ni m. Many platorms only

award unds to the project owner i the original

unding goal is either met or surpassed within the pre-determined unding period (e.g. Kickstarter). In the

event that the project does not meet its unding goal,

contributors are either reimbursed or their pledges

are never ullled (i.e. credit cards or other payment

accounts are never charged).

c i m i

mmii-b bi m where the

platorm receives somewhere in the range o 2%-5% o

the total amount o unds raised during the campaign

rom the project owner. However, a ew platorms have

adopted a xed-ee approach where a project creator

pays a pre-determined xed ee to the platorm operatorin exchange or the service o housing their campaign on

that platorms website.73

73 Crowdunding Industry Report: Market Trends Composition and Crowdunding Platorms. Crowdsourcing.org. May 2012. P.23.


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4.1 ci sii l piv ii

As discussed in sections 1.1.3 and 1.3.3,

ci ii i i i m

qi i j m i.

Under current laws, there are limited circumstances under which

private investors can buy securities in a company without that

company issuing an in-depth prospectus used in a traditional initial

public oering.74 There are some exemptions to the prospectus

requirement, but these vary across provinces/territories and are

typically limited to Friends and Family contributions. Nevertheless

there are two exemptions that do apply in all o the provinces

and territories: 1) Accredited investors those who have eithera net worth o more than $1 million or annual income o more

than $200,000 or 2) i an investment is a minimum o $150,000

or more.75 Current laws also prohibit public solicitation o equity

investments, which makes the social networking aspect o the

crowdunding concept inherently illegal when equity is being sold.

t ci av t ai i

i - bbi mi i

v 13 vii ii ii

ii ii in a manner similar to how

the ederal securities legislation is currently being changed in the

US in the wake o the new JOBS ACT. In addition, the Canadian

Securities Administrators (the umbrella group or the countrys

13 provincial and territorial securities commissions) is also in the

process o a large-scale review o the prospectus requirement

exemptions with the intention o broadening them to potentially

leave room or crowdunding.76 And the Ontario Securities

Commission has ocially submitted a notice o review o the

exemptions in Ontario.77

I it were to ever become legal to sell securities via crowdunding, it

would come into direct competition with seed or angel investors.78

However, crowdunding would not compete directly with venture

capital nancing because traditional venture capitalists (VC) do

not typically invest in projects, they invest in companies and

most content creators are using crowdunding or individual

projects. Nor do traditional VCs typically invest in an initiative at

the concept stage, which is where the majority o creative projects

enter a crowdunding campaign. Furthermore, traditional VCs

do not typically make investments o less than $1 million, which

is signicantly higher than the average crowdunding goal or a

creative project (typically $20,000$50,000). For most VC rms

looking or higher returns, higher levels o investment are more

attractive. Investments that all under $1 million would typically getpicked up by the boutique VC community or angel investment

network.79 On the fip side, VCs might benet rom a crowdunding

campaign because it can yield useul market analytics that could

help validate the case or investment at a later stage.80

Beyond the clear legal restrictions associated with equity-based

crowdunding, there are concerns among stakeholders about

how changes to securities laws could aect the publics protection

against investment raud. There is an inherent risk o raud either

originating with project owners or with the platorms and services

that host campaigns. However, proponents o the model claim that

crowdunding actually encourages greater transparency because

o the larger role that trust plays in infuencing an investors

decision, thereby maintaining a relatively low risk o raud. 81 The

JOBS ACT in the US has a number o provisions to help mitigate

the increased risk o investor raud, as outlined in section 1.3.1.

There is also the risk o unintentional raud which can happen

when a successully unded project never gets produced or some

reason or when the nal product delivered is not quite what was

originally envisioned and advertised.82 Furthermore, it is common

that a creative project never generates revenue or prot making

it risky to promise revenue or prot share return on investment.83

74

A case for crowdfunding. Christine Dobby. Financial Post. April 18, 2012. http://business.nancialpost.com/2012/04/18/a-case-or-crowdunding/.75A case for crowdfunding. Christine Dobby. Financial Post. April 18, 2012. http://business.nancialpost.com/2012/04/18/a-case-or-crowdunding/.76A case for crowdfunding. Christine Dobby. Financial Post. April 18, 2012. http://business.nancialpost.com/2012/04/18/a-case-or-crowdunding/.77 Stakeholder interviews. Conducted by Nordicity. May-June, 2012.78Venture capital rejection leads to funding record. Wallace Immen. The Globe and Mail. April 18, 2012. http://www.theglobeandmail.com/report-on-business/small-

business/sb-money/business-unding/venture-capital-rejection-leads-to-unding-record/article2405552/.79 Stakeholder interviews. Conducted by Nordicity. May-June, 2012.80Venture capital rejection leads to funding record. Wallace Immen. The Globe and Mail. April 18, 2012. http://www.theglobeandmail.com/report-on-business/small-

business/sb-money/business-unding/venture-capital-rejection-leads-to-unding-record/article2405552/.81The Crowdfunding Revolution Will Democratize Venture Investing. Kevin Laughton. Hungton Post. December 08, 2010. http://www.hungtonpost.com/kevin-lawton/

democratizing-venture-cap_b_792498.html.82 US: State acts to boost start-ups through Funding Portals. Chriss Nuttall. Financial Times. July 12, 2012. http://www.t.com/intl/cms/s/0/79363204-a5-11e1-b737-

00144eabdc0.html#axzz1ypg3rmO5.83 Stakeholder interviews. Conducted by Nordicity. May-June, 2012.


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legal consIderatIons or canadIans

usIng KIcKstarter

whi Kicktat i nt acci t Canaian,many Canaian c hav ht camain

thi jct n th a atm. Hv,

th a a nm cniatin t tak int

accnt c kin t acc Kicktat:

Kickstarter is only available to project owners who comply

with the ollowing eligibility requirements:

s !REAPERMANENT53RESIDENTWITHA3OCIAL3ECURIT

Number

s (AVEA53STATEISSUEDIDENTIlCATIONEGDRIVERS

license)

s (AVEA53BANKACCOUNTANDAMAJOR53CREDITCARD

or debit card

s (AVEA53ADDRESS

The eligibility requirements listed above exist primarily

in order to comply with the requirements o Amazon

Payments, Kickstarters payment processing partner.84

In order to host a campaign on the Kickstarter website,Canadian content creators need to engage a third-party

based in the USbe it a riend or amily member or a

partner company. Engaging a third-party partner in this

way comes with a number o implications:

s !THIRDPARTMANOTOWNTHERIGHTSTOPROMOTEAND

distribute a product on behal o the creator, and

thereore not have the legal right to do so.

s 4HEREISAMBIGUITABOUTOWNERSHIPOFTHEPROJECTAND

the legal relationship between the platorm, the creator

and the third-party partner.

Funds raised through Kickstarter would have to betranserred rom a partners oreign (US) bank account

to the original project owners Canadian bank account,

which has a number o legal implications regarding duties

and income taxes when money crosses borders in that

way.85 For example, revenues gained rom a reward-

based and/or pre-sale-based crowdunding campaign

could be considered revenue rom the sale o goods

and would be subject to income tax, i the money is not

properly reported as such when it is passed rom the US

partner to the Canadian project owner this could have

legal implications.86

84 Kickstarter announced in early July, via Twitter, that project owners based in theUK would be eligible to host projects on the platorm beginning in Fall o 2012.

85 Stakeholder interviews. Conducted by Nordicity. May-June, 2012.86 Stakeholder interviews. Conducted by Nordicity. May-June, 2012.


28/35


4.2 t civ c i emAs a relatively new phenomenon in Canada, there remains a great

deal o ambiguity about crowdunding and what the broader

nancial implications might be or producers who wish to access

both crowdunding and other more traditional sources o unding

or their projects.87 Many o the stakeholders in the unding

ecosystem are currently either reviewing the crowdunding

question or using a wait and see or case-by-case approach.

However, in the absence o clear positions and guidelines to

ollow, producers who are already accessing unds through

crowdunding campaigns do not know how to report these unds

in their unding or tax credit certication applications. As such,

they could be at risk o penalties should they be audited at a later

date and it is ound that crowdunding dollars were not reported in

the appropriate manner.

The is sues rela ti ng to how crowdunding impacts conten t

creators access to other orms o unding is only applicable to

producers who would be accessing both traditional and non-

traditional sources o unding. However, as section 2.1 discusses,

those projects and producers that are best suited to crowdunding

may be the very projects that cannot access traditional unding

sources to begin with.

That being said, stakeholders did identiy key considerations

or potential implications that should be noted in cases where a

producer might want to access both crowdunding and traditionalunding sources.

4.2.1 Certied Independent Production Funds andother unding grants

Currently, there are no clear restrictions on the use o crowdunding

in terms o how it impacts a producers eligibility or unding

grants.88 Most unding bodies currently allow producers to engage

in crowdunding without it impacting their eligibility or unding.

However, many are also waiting to encounter an application that

cites crowdunding in order to make a decision or how it will be

treated.89

87Time to Join the Crowdsourcing Trend?. Playback. Spring 2012. P. 13117.88Time to Join the Crowdsourcing Trend?. Playback. Spring 2012. P. 13117.89 Stakeholder interviews. Conducted by Nordicity. MayJune, 2012.


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4.2.2 Provincial and Federal Tax Creditstmi mbii

i mi iibii

vii x i.

In act, c rv a i i

vi xmii qii

i v b

i x i.90 In the meantime, provincial and

ederal tax credit administrators are waiting or the decision beore

they take action to change their own certication guidelines. It is

unclear whether or not tax credit administrators have received

applications rom producers who have accessed crowdunding

as they may have accounted or that revenue in any number oways on their applications (e.g. as assistance, as a producer or

distributor arm contribution, as revenues rom sales, etc).91

The key considerations regarding crowdunding when it comes to

tax credits include:

s!SSISTANCE)FTHE#2!CONCLUDESTHATCROWDFUNDINGDOLLARS

raised via a Donation Model campaign should be reported as

assistance (much like receiving unding through a und l ike the Bell

Fund), that amount would become deductible rom the projects

eligible expenses.92 In addition, the CRA could conclude that

unds raised via a Lending Model crowdunding campaign which

takes the orm o a orgivable loan would also be considered

assistance or the purposes o tax credit calculations.

s2EVENUESFROMTHEECHANGEOFGOODSATAFAIRMARKETVALUE

The CRA could conclude that under a Donation Model or pre-

sale-based Lending Model, the exchange o incentives or pre-

sold copies o a product alls under the provision o exchange

o goods at air market value. In this case there would be no

implications regarding either eligibility or calculations or tax

credits. Nor would there be any legal issues under securities laws

because this would be considered a legitimate exploitation o the

producers rights or money (revenue). However, this particular

position could become complicated due to issues surrounding

how the air market value o certain intangible incentives (e.g.

acknowledgement in the credits, a dinner with the creative

team, a character named ater the contributor) is ascertained.93

Intangible incentives are inherently dicult to valuate. Moreover,

there might be some grey areas about the true air market value

o goods in the crowdunding world, which could dier rom

the value o the same goods in a retail, e-commerce or digital

distribution context.94

s,OANS A Lending Model campaign that ollows a traditional

lending agreement would likely be counted in the same way

as traditional loans, which would have no specic implications

when it comes to calculating eligible expenses or the purposes

o tax credits.95

s%UITCROWDFUNDINGAccording to tax credit administrators,

an Investment Model campaign would likely automatically

disqualiy a producer or project rom access to tax credits. There

are very strict regulations under the tax credit guidelines about

what entities are allowed to hold interest in a production.96

s0RODUCERORDISTRIBUTORCONTRIBUTIONI a production com

is structured in such a way that there is a parent company and

then a single production corporation or a specic project,

then producers could conceivably collect crowdunding dollarson behal o the parent company and count it as a producer

contribution rom that parent entity. Similarly, or companies that

have set up a distribution arm, the crowdunding campaign could

be done under the distribution arm o the company and any

monies raised would be counted as a distributors contribution.

I the CRA decides to sanction this way o accounting or

crowdunding dollars then it would not run counter to any tax

credit regulations and would be considered a legitimate way o

collecting and reporting crowdunding dollars.97

90 Stakeholder interviews. Conducted by Nordicity. MayJune, 2012.91 Stakeholder interviews. Conducted by Nordicity. MayJune, 2012.92 Stakeholder interviews. Conducted by Nordicity. MayJune, 2012.93 Stakeholder interviews. Conducted by Nordicity. MayJune, 2012.94 Stakeholder interviews. Conducted by Nordicity. MayJune, 2012.95 Stakeholder interviews. Conducted by Nordicity. MayJune, 2012.96 Stakeholder interviews. Conducted by Nordicity. MayJune, 2012.97 Stakeholder interviews. Conducted by Nordicity. MayJune, 2012.


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4.2.3 Broadcast and Distribution PartnersB iib v k fm

i mi i ii

i i. For the most part, though

broadcasters are cautiously observing the developments, they

generally agree that the money raised through crowdunding

is legitimate and do not currently have any reason to reject

a production on the basis that it is not a legitimate source o

unding. However, one consideration that broadcasters do take

into account is whether crowdunding would impact the ability

to access any necessary additional unding or the production,

thereby putting the project in jeopardy.

That being said, there are a number o other considerations thatmight have the potential to become barriers or producers utilizing

crowdunding when it comes time to engage broadcast and

distribution partners.

s/WNERSHIP i. In an Investment Model, where

contributors receive equity in the company or rights to the

product in exchange or their contribution, a producer would

likely jeopardize his/her ability to establish a licensing agreement

with a broadcaster. Broadcaster agreements typically come with

very specic and very strict limitations on who can own rights

to the product.98 They typically do not allow any private third

party investment.

sOURNALISTIC iii. One o the

major concerns rom the perspective o broadcasters is the

risk that crowdunding could pose to journalistic standards and

policies regarding editorial control.99Any campaign that has the

appearance o giving up or sharing a creators artistic decision-

making power with contributors could make broadcasters

nervous. Any perception that the content o a project was in

any way infuenced by contributors (e.g. advocacy through the

sponsorship o ideas) or that a contributor has a specic interest

in the content could be viewed very negatively by broadcasters

and those projects are likely to nd it dicult to engage a

broadcast partner.s%PLOITATIONOFRIGHTSProducers who use a pre-sale-based

Lending Model could encounter diculties securing broadcast

license agreements because the broadcaster could perceive

this as an exploitation o rights that diminishes the value o the

rights they would be purchasing.100 Broadcasters might eel that

the market or a production has already been tapped through

the pre-sale unding eorts. Similarly, it might be dicult to

secure a distributor advance i the producer is already engaging

in direct distribution via the pre-sale model.101 However, under

a Donation Model broadcasters and distributors may actually

value a project unded through crowdunding. On the one hand,

a successul crowdunding campaign provides the distribution

or broadcast partner with evidence that there is an existing

audience or the production. On the other hand, the production

will already have been promoted as part o the crowdunding

campaign which means that the broadcaster or distributor have

less work to do in promoting the production.




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5. suMMary and conclusIons

Crowdunding is an emerging alternative nancing vehicle that has

experienced a recent boom in Europe and North America, primarily

driven by recent multi-million dollar record-breaking successes

on platorms in the US. Indeed, crowdunding has become a

signicant way or people to und their ideas and projects across

a number o industries. In particular, it has become popular in art,

lm, music and interactive digital media.

In the wake o the increased media attention or high-prole

campaigns and recent changes to securities laws in the US to

accommodate crowdunding, this new nancing model has

become more visible in Canada as well. A number o Canadian-

based crowdunding platorms have emerged and discussion

has been abundant among regulatory and industry bodiesrom

the tech sector to the creative media sectorregarding how

crowdunding ts into Canadas current legal, regulatory and

unding environment.

There are three basic crowdunding models: (i) The Donation

Model when contributors oer a contributionoten in exchange

or a small rewardwith no expectation o repayment, nancial

gain or ownership; (ii) The Lending Model where contributors

expect a repayment o their contribution in some orm; and (iii)

The Investment Model where contributors purchase securities be

they equity or other. All three models have their advantages and

disadvantages and some are better suited to the creative content

industries than others.

Current securities regulations in Canada make it illegal or

companies to sell securities through crowdunding, meaning

that an Investment Model is not currently easible or Canadian

creative content creators. Furthermore, an Investment Model

is not well suited to the creative content industry because (i) it

would complicate the nancial structure o companies or lm/

TV producers and (ii) it does not t the project-based business

structure o interactive digital media and small independent

production companies. The Investment Model also carries many

risks when it comes to accessing unding or building relationships

with broadcast or distribution partners because o restrictionsaround third-party investment and third-party ownership in unding

guidelines and licensing agreements.

Lending Models are not burdened by the same restrictions when

it comes to a producers ability to access other types o unding.

However, they come with additional administrative eort to

contract and manage the lending relationship.

The Donation Model, with a clear exchange o goods in the orm

o incentives, or the pre-sale Lending Model are the two best

suited crowdunding models or content creators in Canada.

While there are still a number o outstanding questions on how a

Donation Model might aect producers ability to access existing

unding sources. These risks become less signiicant when

the model is accompanied by an incentive program because it

becomes an exchange o goods or money in a dened market.

In addition, a pre-sale Lending Model is a simple exploitation o

project rights and comes with the least amount o risk, barring the

possibility that it might impact negotiations or broadcast licenses

or distributor advances.

There is certainly a demand or crowdunding among Canadian

creative content creators. However, the highest demand seems

to be among independent producers or interactive digital

media content developers working with smaller-scale budgets.

Crowdunding is typically most eective or raising smaller amounts

o money rom $5,000$50,000, although there are exceptions

to this general rule. In addition, emerging content creators who

cannot access or do not yet know how to navigate other unding

sources tend to be most interested in exploring this new unding

vehicle. Projects that deal with niche content or content with a

very specic grass-roots ollowing also tend to be more common

on crowdunding platorms. Crowdunding oers the additionaladvantage o direct audience building, audience engagement and

market testing with the ability to leverage social-media to access

those marketsall things that lend themselves well to projects

that need to access niche markets or want to harness the support

o a strong grass-roots movement.

That said, stakeholders in the creative content industries

whether content creators, legal experts or industry support

organizationsalso expressed a lack o understanding or how

crowdunding ts into the broader unding ecosystem in Canada.

There is a valid concern that guidelines surrounding tax credits

and other unding sources have not yet been established or unds

raised via crowdunding.Given the lack o clarity regarding legal, nancial and policy

issues related to crowdunding and the relative novelty o the

concept, producers exploring the potential opportunities oered

by crowdunding should adopt a philosophy o experimentation.

In addition they should proceed with caution, ensuring they are

aware o all the associated risks o engaging in this type nancing

activity beore launching a campaign.


32/35


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33/35



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N incntiv,

natin

pjct civ any

an a n ai,

itht tictin

sma Chan n

cha a 10% t

jct n n any

n ai

o th a vic

avi, jct matt

xt h vi at

jct ith avic an

C nin a n a a

jct ach it nin

Minimm natin $

pjct n hav t

chaita anizatin

aif n

pim

Vnt

eqity invtmnt

hih tch tat-

Nt cif Invtmnt M Nt cif dataa accit inv

bin qity-a

cnin t a ntk

accit invt

AtMakt-

Canaa

Cativ an atitic jctony avaia

t Canaian

jct

initiativ

dnatin M

(a-a)

A--Nthin

nin

8.5cmmiin n n

ai i a camain i

cc (inc any

tanactin aymnt

cin )

Aitina $n-tim

fx ( acknchck)

pjct hav t a t

f in Canaa

Atit that i nt ach th

nin a in th att

tim t h achiv 25

m thi nin a a

ivn th tin t -anchthi camain

A jct n a jc

a ackn chck in an

t vnt a


34/35



tct Aitinaat

Kivni Inmatin Kivni i nt cnty avaia n th Kivni it (a Jy 2012).

Iaci gna p,

tani ct

ga Hyi lnin M

(-a) an

Invtmnt M

(vn-hain)

A--Nthin

nin

$100 a fx ,

im t th jct

n i th jct

ach it a

15cmmiin n

a m a ct

ft ctin n

510%cmmiin

n th main m

qnt ctinn

d a an -cmmc

atm fnih ct

Inivia h - a

ct an th iht t a

vn n vy ctin

n th ct 10 ya

rvn ha amnt a

ntiat n a ca-y-ca

ai

u a it-a -m. by t $n

t aant thi itin in

in th ct nc it i

cmt

Iaci ha a ntk

cativ, a an i

vic vi that jc

cat can acc

Iaci tain nn-xc

ititin iht th


35/35

c Mi

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