General

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.
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.
Crowdmatrix is a Registered Exempt Market Dealer(EMD) in Ontario, British Columbia, Alberta and Quebec.
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.
To use Crowdmatrix an individual must qualify as an accredited investor. To qualify as an accredited investor you must meet 1 of the below criteria.
  • Individuals whose net income before taxes exceeded $200,000 (or $300,000 in combination with the net income of their spouse) in the past two years, and who reasonably expect to earn the same amount or more in the current year, can qualify as accredited investors.
  • Individuals whose net assets (assets minus liabilities, including your home), either alone or together with their spouse, exceed $5,000,000 can qualify as accredited investors.
  • Individuals whose financial assets, either alone or together with their spouse, exceed $1,000,000 can also qualify as accredited investors.
Currently only accredited investors can invest through Crowdmatrix, unless you are qualify as friends/family of the company raising, if this is the case please contact us at andrew@crowdmatrix.co.
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.

Investing

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.
  • 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.

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.

  • 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 lead investor evaluates the company, negotiates the term sheet performs due diligence and invests its own money.
  • 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.
No, unless the lead investor or company raising money decides to set one.
Your investment is not collected until the deal closes. When the deal closes we will reach out to all the investors and let them know.
Crowdmatrix doesn’t touch the money. After the deal closes, you will received closing documents to sign along with instructions on where to send the cheque.
When investing into a private opportunity, there is no fixed timeline for liquidity. Early stage tech investing usually means that the investment will be illiquid until there is an “exit” event for the company (a sale or IPO). Occasionally, there are opportunities to sell one’s shares or securities in a private sale, but we wouldn’t suggest that you count on that happening to realize upon your investment. The average time to exit a venture backed company in Canada is 5.7 years from their first round of funding. Having said all of that, investors typically expect higher returns in exchange for the illiquidity, so early stage investing tends to generate higher returns IF successful.
A deal may or may not have a lead investor on Crowdmatrix. A lead investor is not an employee of Crowdmatrix, but is an experienced investor with a track record of successful investments. Leading the deal means researching and vetting the company raising funds, negotiating the term sheet and writing the first cheque. The lead then fills the remaining amount of the raise from co-investors on Crowdmatrix.
The percentage of profits that the lead investor and Crowdmatrix charge co-investors on any return made.
Each deal will have different minimums and maximums that are set by the company raising money. These can be found in the deal terms section on each company’s profile page.
Each deal will have a closing date displayed in their company profile. Closing dates are decided by the company, the lead investor and Crowdmatrix. Generally 30-90 Days.
The maximum and minimum target raise amount is set by the company and displayed in the company’s profile.