A Canadian company, Vrvana, Inc. is seeking
$350,000 through Kickstarter, to finance its development of a
virtual reality headset marketed as the Totem. Vrvana has elected
to pursue a reward-based crowdfunding model. For example, minimal
donations of $15 come with a newsletter subscription and event
invitations. The top end contribution of $8,000 will net a Totem VR
headset and a dinner date with the team of engineers.
Crowdfunding attracts headlines and cash, but in Canada the
rules and laws surrounding equity crowdfunding are still in
development. The securities or equity-based model of crowdfunding
refers to small investments in exchange for securities - which has
a broad definition meant to capture shares in the start-up company,
including pref shares or convertible securities, non-convertible
debt securities, or units of a limited partnership. In plain
terms, a company could use this method of crowdfunding to raise
money by selling a piece of the company, rather
