Crowdfunding Industry Overview

Crowdfunding Challenges . ● Fraud and investor protection ➤ Crowd intelligence and due diligence ➤ Insurance Concerns of illiquid nature of crowdfunding investments Purchase risk acknowledgement ➤ Strong case to develop a secondary market Increase in business failures and investor fatigue Slide | 19 Large number of investors Can be organized into a trust (single controlling member) ➤ Streamlined communications, voting, reporting and tracking Regulations need to match equity crowdfunding models ➤In the US, SEC/FINRA slow to finalize and only recently released equity crowdfunding rules and regulations ➤ Canadian regulators are assessing the need for proposed frameworks of a specific crowdfunding exemption versus permitted under existing prospectus exemption (i.e., the OM exemption by an EMD) Employment and Social Development Canada NCFA Michal Chowdurcing Association Canara

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