๐๐๐ง๐๐๐ข๐๐ง ๐๐๐ซ๐ฅ๐ฒ-๐๐ญ๐๐ ๐ ๐๐๐จ๐ฌ๐ฒ๐ฌ๐ญ๐๐ฆ ๐๐ง๐๐๐ซ๐ญ๐๐ข๐ง๐ญ๐ฒ ๐๐ซ๐ข๐ฏ๐๐ฌ ๐๐ญ๐๐ซ๐ญ๐ฎ๐ฉ๐ฌ ๐ญ๐จ ๐๐ฑ๐ฉ๐ฅ๐จ๐ซ๐ ๐๐๐ฐ ๐๐ซ๐จ๐ฐ๐ญ๐ก ๐๐ง๐ ๐๐๐จ๐ ๐ซ๐๐ฉ๐ก๐ฒ ๐๐ฉ๐ญ๐ข๐จ๐ง๐ฌ At KOAT Capital, we recognize the growing uncertainty within Canada's early-stage ecosystem. Recent capital gains tax changes make it increasingly difficult for startups and entrepreneurs to chart a clear path for long-term growth. Given the current economic climate and these tax changes, Canadian startups are seriously considering the U.S. as a new destination for building their businesses. The proposed increase in the inclusion rate for capital gains from 50% to 66.7% is poised to have a profound impact on the tech community, potentially impeding Canadaโs strides in fostering innovation and developing tech hubs. This uncertainty is compelling talent and businesses to explore more competitive jurisdictions, with the United States emerging as a leading contender. ๐๐๐ฒ ๐๐จ๐ง๐ฌ๐ข๐๐๐ซ๐๐ญ๐ข๐จ๐ง๐ฌ ๐๐จ๐ซ ๐๐ฑ๐ฉ๐ฅ๐จ๐ซ๐ข๐ง๐ ๐.๐. ๐๐ซ๐จ๐ฐ๐ญ๐ก: 1. Competitive Tax Environment: The U.S. offers a more favourable tax regime for capital gains, with long-term rates at 20% and exemptions under the Qualified Small Business Stock (QSBS) provision. This makes the U.S. more attractive for investors and entrepreneurs alike. 2. Robust Fundraising Options: The U.S. provides access to various fundraising mechanisms, including Regulation A (Reg A) offerings, allowing companies to raise up to $75 million from accredited and non-accredited investors. Platforms like Scalioโs Particle Platform simplify crowdfunding, offering startups broader access to capital. 3. Access to Larger Markets: The U.S. offers a larger market for growth and investment opportunities, which is crucial for startups aiming for rapid expansion. ๐๐ฆ๐ฉ๐๐๐ญ ๐จ๐ ๐๐๐ง๐๐๐ข๐๐ง ๐๐๐ฑ The potential increase in the inclusion rate for capital gains in Canada has sparked significant apprehension among tech leaders and investors, potentially discouraging investment, hampering job creation, and adversely affecting the innovation ecosystem. As a result, Canadian startups and entrepreneurs are actively considering a move to the U.S. for its advantageous tax environment, diverse fundraising options like our portfolio company Scalio Particle Platform, and access to larger markets, all of which present a stark contrast to the current situation. #KOATCapital #Fundraising #StartupFunding #Innovation #Entrepreneurship #TaxPolicy #Investment #Scalio #Crowdfunding
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KOAT Capital is pleased to announce our latest blog post: Revolutionizing Equity Fundraising. In today's rapidly evolving financial landscape, alternative investment options have become more crucial than ever. Traditional funding avenues often fall short for many small and medium businesses (SMBs), stifling innovation and growth. Our latest blog explores how innovative mechanisms like fractional investing and equity crowdfunding, exemplified by Scalio's Particle Platform, are filling this gap. Read the full blog post here and stay ahead in the world of innovative finance. https://lnkd.in/gzxhHdq7 hashtag #EquityFundraising #AlternativeInvestments #Crowdfunding #FinanceInnovation #KOATCapital #Scalio #ParticlePlatform #SMBGrowth
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๐๐จ๐ฐ ๐๐ ๐๐ฅ๐ฆ๐จ๐ฌ๐ญ ๐๐จ๐ฌ๐ญ ๐ญ๐ก๐ ๐๐ญ๐๐ฆ๐ฉ๐๐๐ โ ๐๐ก๐ ๐๐ซ๐ ๐๐ง๐ญ ๐๐๐๐ ๐๐จ๐ซ ๐๐ง๐๐ซ๐๐ฌ๐ญ๐ซ๐ฎ๐๐ญ๐ฎ๐ซ๐ ๐๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ The recent water crisis in Calgary is a stark reminder of the urgent need to invest in and modernize our critical infrastructure. A catastrophic water main failure occurred on a line installed in 1975, disrupting the lives of over a million residents and countless businesses and highlighting the vulnerabilities in even well-maintained systems. While the actual cause has yet to be determined by an independent review, the incident exemplifies how aging infrastructure across North America is in dire need of attention. While water main breaks can oftentimes be rectified in a matter of days, severe instances like this one promise to last well into the summer. At KOAT Capital, we believe this situation underscores the growing importance of companies like Mission Critical Futures (MCF), which is dedicated to enhancing infrastructure resilience. MCF is at the forefront of addressing these challenges, focusing on water/wastewater, energy, and digital infrastructure. Need for More Critical Infrastructure Companies: The Calgary crisis revealed the widespread infrastructure deficits across North America. More companies specializing in critical infrastructure are urgently needed to meet the increasing demand for reliable and resilient systems. ๐๐๐ซ๐ค๐๐ญ ๐๐ฉ๐ฉ๐จ๐ซ๐ญ๐ฎ๐ง๐ข๐ญ๐ฒ: The critical water infrastructure protection market is projected to reach USD 333.70 billion by 2030, with a CAGR of 7.56%. This presents a significant opportunity for companies that can offer innovative and sustainable solutions. ๐๐๐ '๐ฌ ๐๐ญ๐ซ๐๐ญ๐๐ ๐ข๐ ๐๐จ๐ฌ๐ข๐ญ๐ข๐จ๐ง๐ข๐ง๐ : With expertise in strategic advisory, engineering, and design, MCF is well-positioned to capitalize on this market opportunity, driving growth and enhancing infrastructure resilience across North America. ๐๐ซ๐จ๐ฏ๐๐ง ๐๐ฑ๐ฉ๐๐ซ๐ญ๐ข๐ฌ๐: MCFโs team brings decades of experience building and growing firms, ensuring they have the credibility and capability to close enterprise and government accounts. As we witness Calgary's challenges, it becomes evident that governments must consider proactive investment in critical infrastructure, which is not just necessary but urgent. Companies like MCF are prepared to meet these challenges and drive the future of resilient and sustainable infrastructure. Let's prioritize our infrastructure investments today to protect our communities and ensure a resilient future. #InfrastructureInvestment #CriticalInfrastructure #WaterCrisis #Sustainability #KOATCapital #MCF #Innovation #IIJA
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We are pleased to announce a significant milestone for KOAT Capital: We have entered into a strategic partnership with Mission Critical Futures (MCF). MCFโs expertise in integrating and scaling innovative approaches will enable us to enhance essential industries' resiliency, protection, and advancement globally. By focusing on Water and Wastewater, Energy, and IT infrastructureโmarkets with a combined size of approximately $310 billionโMCF is poised to address the pressing challenges of aging infrastructure, technological obsolescence, and cybersecurity threats. Including CPR Inc. and Fleaux Solutions under MCF's leadership is a testament to its commitment to delivering top-notch solutions and expanding its platform and reach. We are optimistic that this partnership will generate significant value for customers and shareholders. Read the full release here: https://lnkd.in/dVZcNM5F #KOATCapital #MissionCriticalFutures #StrategicPartnership #Innovation #Sustainability #Infrastructure #WaterWastewater #Energy #ITInfrastructure
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KOAT is thrilled to share our latest strategic move: The acquisition of Scalio, a prominent Silicon Valley-based digital product and service provider. Scalio's impressive track record of blending design, technology, and digital strategy to create transformative solutions aligns perfectly with our philosophy focused on driving long-term value creation. With over 850 projects spanning various industries and partnerships with renowned brands, Scalio brings invaluable expertise to our portfolio. Read the full release here https://lnkd.in/gWE6vpRY This acquisition underscores our commitment to investing in innovative companies and reinforces our position as a key player in the digital innovation space. Stay tuned for the exciting opportunities that lie ahead as we leverage Scalio's capabilities to drive growth and innovation across our portfolio. #PortfolioUpdate #DigitalInnovation #KOATCapital #ScalioAcquisition
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