A New Way to Invest in Alternative Assets Online
How Crowdmatrix Works
Crowdmatrix is a new way to discover, curate and invest in high-potential alternative assets online, including private equity funds, tech startups, private debt and real estate opportunities.
Who Can Invest On Crowdmatrix
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.
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.
Types of Investment Opportunities Currently Offered
Crowdmatrix is a marketplace for private offerings of alternative investments. The listed offerings are curated by Crowdmatrix’s investment committee, and may include offerings by high growth companies, private equity and venture capital funds, private debt and real estate offerings.
Venture Capital Investments
How VC Fund Investing Works on Crowdmatrix
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 leading Canadian venture capital funds. We’ve made the investment thresholds low and the process simple, driven by our tech-enabled platform.
Structure of VC Deals
- When investing in venture capital deals on Crowdmatrix you will be actually investing in a Special Purpose Vehicle (a Limited Partnership), whose sole investment will be units of the subject venture capital fund.
- There will be expenses related to the creation and maintenance of the SPV which will be paid from the capital raised, and there may be an annual management fee and/or a carried interest, both of which is payable by the investors.
How Direct Investing in Tech Works
Investing in growing tech companies is an exciting way to join and help grow the canadian tech ecosystem, while supporting canadian entrepreneurs. However, with so many startups being created and seeking funding, it can be very difficult and time consuming to find, diligence 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.
Structure of Tech Deals
- Most of our tech direct investments use a syndicate structure with a “Lead Investor” at the head.
- The Lead Investor is an experienced investor that may be an angel investor, VC fund or other strategic individual with a track record of successful investments.
- The lead investor evaluates the company, negotiates the term sheet performs due diligence and invests its own money.
- The deal is then listed on Crowdmatrix to build a syndicate of co-investors to fill the balance of the raise. This allows our investors to leverage the expertise and experience of professional investors and access vetted deals at a lower minimum investment.
- Investors on Crowdmatrix will actually be investing in a Special Purpose Vehicle (a Limited Partnership), whose sole investment will be the securities issued by the startup. The SPV will purchase the same securities on the same terms as the Lead Investor.
- There will be expenses related to the creation and maintenance of the SPV which will be paid from the capital raised. There will also be a carried interest payable by the investors, which is a percentage of any profits made on the deal. That carry is shared between the Lead Investor and Crowdmatrix, but ensures that our respective compensation is linked to the success of the investment
6 Reasons to Invest on Crowdmatrix
Deals Vetted By Professionals
Lower Minimum Investments
No Membership Fees
Streamlined Digital Investment Framework
Online Digital Doc Signing & Storage
Crowdmatrix is a Registered Exempt Market Dealer
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