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Frequently Asked Questions

General

General

What is the SVX?

The SVX is a secure, online platform that allows you to invest in companies and funds that have a positive social or environmental impact. Think of it as a one-stop-shop for impact investing.

We bring all sorts of venture opportunities direct to you through the platform. All of the products on our platform are Canadian private market securities. Through the SVX, you can browse active opportunities to support scaling social impact ventures and seek financial return. We are fully compliant with all securities laws and registered as an Exempt Market Dealer in Ontario, Québec, Alberta and British Columbia. We're excited to help you achieve postive impact alongside financial return!

How does SVX work?

What is equity crowdfunding?

Is the website secure?

Where can I find a glossary that helps me understand all of these investment terms?

How is SVX connected to MaRS?

What do you mean by impact?

How can we get in touch with you to ask a question that's not listed here?

Investors

Registration

How do I sign up?

It's easy! If you're an impact investor, entrepreneur, organization, or fund manager, go  to the top right of the screen and click Sign-up. If you are already registered, just click on Login.

Does it cost anything to be a part of the SVX investor community?

Can I invest in SVX opportunities if I'm not Canadian?

Can I sign up for the SVX if I'm not located in Ontario?

What ID do you need to collect to allow me to invest?

Why do you need to collect my ID?

Risks

Why should I invest in early stage ventures and private securities?

Private market securities are usually issued by growing companies who are looking for capital to scale. Often times, these opportunities are hard to access and you can't get in when there is a potential for a large return later on. SVX sources these types of private market securities that also work to solve a social or environmental problems our community faces.

What are the risks of investing in early stage ventures and private market securities?

How can I manage my risks?

Can I re-sell my investment?

Will my investments have voting rights?

Making an Investment

What types of investments are offered on SVX?

We bring on social and environmental ventures of all types - from early-stage, scaling ventures, to funds that invest directly themselves, to nonprofits offering debt opportunities. Every opportunity is vetted by the SVX team and an issuer review committee with independent members. We review the financials, business model, and team to make sure it's a viable product. Then we share this diligence with our investors. That way, we have deals that investors can get behind, and we take a load off the investor's back in terms of evaluation.

What documentation and information is provided to support my decision making process?

Is the website secure for investors?

What is the difference between debt and equity?

Do I have to pay a fee to the SVX to see these deals or at the time of investments?

How do I apply to invest?

How long does it take for you to review my investment?

How do I make a payment for my investment?

What is escrow?

How are documents signed?

How much can I invest?

When do I get my investment document (eg. the securities)?

What if I change my mind about my investment?

Can a company, fund, or SVX cancel my investment?

What happens if a campaign fails to reach its fundraising target?

Does SVX charge a fee to companies and funds for each investment?

Do I have any liability as an investor in a particular company?

How will my investment be used by the companies I invest in through SVX?

Returns

Can I make a return on my investment?

The type of return you can make depends on the type of financial product you invest in.

  • If your investment is a fixed income product like debt (a loan), the venture will arrange to pay you in regular installments as laid out in the agreement.
  • If you make a direct equity investment, the company can return capital in a few different ways. If they are acquired by another company, you can sell your equity shares to make money. Or, if they go public, you can sell your shares on the open market. The company may also decide to pay a dividend to their shareholders. There may be many terms and conditions on the shares you are purchasing so we encourage you to have a lawyer review your investment to ensure you fully understand your rights as an investor.
  • If you make a fund investment, your return depends on the performance of the fund and the contract you sign with the partnership.
  • And sometimes, you can also sell your investment to other buyers in the private markets.
  • Each deal you make will lay out the terms so you can understand the upside and risks. All that said, remember that private markets investment returns are not guaranteed. Click here for a full explanation of the risks of investing in these financial products.

How do I make a return on my investment?

When will I receive a return on my investment?

Post-Investment

Will I receive updates from the company?

Under the crowdfunding and offering memorandum exemption, the investor can expect to receive annual financial statements, a notice of key events that took place and information of how the funds were used.

Can I contact the company directly?

Ventures and Funds

Registration

What is the process to sign up?

It's easy! If you're a venture, simply click on the link above to sign-up. We will need to learn about your venture and investment offering through your application. We will be in touch to go over the details of your submission and ensure you know the ins and outs of raising capital. After a review with our Issuer Review Committee, made up of experts and investors, we will process a background check of your directors and senior officers and your offering will be ready to be listed online!

You can see more about the process on our How it Works page or reach out to us at info@svx.ca

How long does the registration and review process take?

Services

How does the SVX support me?

SVX supports impact ventures by helping you: a) Prepare or review offering documents ahead of your raise; b) Raise capital through our network of investors committed to companies that deliver strong financial and social/ environmental return; and c) Complete regulatory obligations to investors and the securities regulatory authority through acquiring and preparing requisite forms and documentation via the SVX platform. We hope to help and reduce costs of reporting and legal obligations for issuers throughout the lifetime of an investment.

What other services do you offer for ventures?

What features of the SVX website will help me market my opportunity?

How much does it cost to use SVX?

Raising Capital

How do I know whether I am a fit for SVX?

It is important for you to meet both our platform and industry standards. There are a number of industry requirements of investment offering exemptions by securities regulators in Canada. You can read more about those requirements in our rules and regulations in the footer below. Our platform standards are simple. We work with companies at a variety of stages, from start-up to growth to scale, and we look for the following:

  • Sector Alignment: Clean technology, work and learning, health and wellness, food, and social inclusion.
  • Incorporated: Canadian incorporated for-profit or not for-profit (includes co-operatives).
  • Operating History: Minimum one (1) year operating history.
  • Market Traction: Existing revenue, customers, and/or investment.
  • Business Plan: Business plan that demonstrates understanding of long-term finances, operations, and strategy
  • Impact: Ventures must be a B Corp or reach 80 on the B Impact Assessment and provide five (5) key impact metrics
  • Team: Full time team member(s) with evidence of relevant expertise on leadership team
  • Coachability: Management is coachable and responsive to feedback
  • Scalability: Potential for deep local or national/global scale
  • Sustainability: Entity and investment are sustainable with reasonable profitability
  • We will also ask you for important documents including financial statements, articles of incorporation, a term sheet, background check forms, and business references

What fundraising exemptions can you use on SVX?

What kind of issuers can use SVX?

What are the geographic requirements for SVX issuers?

What kinds of securities can I offer?

What kinds of securities can I offer?

Do you have any template investment contracts?

Do investors have voting rights?

What is the minimum and maximum I can raise?

Can I complete my entire raise on the platform?

How do I receive an investment?

Is there a time limit on my investment offering?

Why should I raise capital here instead of raising capital by myself?

What information and documentation is shared with investors on the platform?

What if my campaign fails to reach its target?

How do I close my campaign?

Can you help me manage my cap table for investors on platform and investors I have secured on my own?

Can I extend my campaign period?

What are the limits on advertising and promoting my capital raise campaign?

How much work do I have to do to promote my campaign?

Post-Campaign

How long does it take to get my campaign funds?

We will disburse your campaign funds for a successful raise within ten (10) business days of your close.

How often do I need to provide investor updates?

Do I need to file an annual report?

How can you help me keep investors updated?