The BC Securities Commission is reaching out to small businesses around the province with new online materials and province-wide presentations aimed at informing small businesses about BC’s capital raising rules.

The BCSC’s publication, Capital Raising for Small Business, is a free guide available for download. It covers a range of topics, including:

  • Defining a security and the key principles of securities laws
  • Discussing differences between the private placement market and public capital markets
  • Explaining exemptions and how they apply when raising capital

The guide also features a section that discusses the information investors should seek before investing in a small business, which includes:

  • information on the full legal names of the company’s directors and officers so that they can conduct background checks
  • a comprehensive set of financial statements showing the company’s financial position, operating history, and cash flow (ideally audited)
  • the purpose for which the business is raising money and whether the planned fundraising will provide sufficient funds
  • a business plan including how the company will make money and within what time period

For a preview of the guide, you can view a short animated video on the BCSC’s new YouTube page (BCSC4Industry). You can download the guide from the BCSC website at www.bcsc.bc.ca.

Suggested Reading

How to Protect Yourself Before You Invest

Understanding risk vs. return when investing in private companies

Combating financial fraud in Canada

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