OSC TestLab update on initiatives to support capital-raising for early-stage businesses

TORONTO, Sept. 25, 2025 /CNW/ - The Ontario Securities Commission (OSC) today provided an update on OSC TestLab: Early-Stage Capital Raising, a set of initiatives to support capital-raising for early-stage Ontario businesses announced in May 2024. The feedback received from OSC TestLab participants and stakeholders provided valuable insights that informed an update and extension of the initiatives, including a new OSC blanket order. The feedback received was also considered in the proposal announced by the CSA today launching a consultation on a proposed harmonized multilateral self-certified investor prospectus exemption.

"As global geopolitical uncertainty continues to impact both the Canadian and Ontario capital markets, the importance of supporting innovation, growth and competitiveness of new and growing businesses is heightened, as they play an important role in our economy," said Grant Vingoe, Chief Executive Officer (CEO) of the OSC. "These updated initiatives reflect the OSC's ongoing commitment to fostering the conditions for growth and innovation in Ontario's capital markets while maintaining investor protection."

OSC TestLab uses testing to evaluate capital market innovations and new approaches to regulation in Ontario's capital markets. Since launching the OSC TestLab: Early-Stage Capital Raising initiative in May 2024, OSC TestLab has consulted with over 500 stakeholders for feedback on the initiatives through surveys, focus groups, roadshows, and one-on-one engagements. This includes early-stage businesses, angel investor groups, exempt market dealers, legal and advisory professionals, and innovation hubs. 

"OSC TestLab: Early-Stage Capital Raising has allowed us to gather data and information and much of this feedback has been reflected in the updates and extensions to our capital-raising initiatives for early-stage Ontario businesses," said Leslie Byberg, Executive Vice President, Strategic Regulation. "These insights are important as we continue to support competitiveness and access to capital for companies."

The OSC has recently updated and extended the Not-for-Profit Angel order and Early-Stage Business Registration exemption, subject to ministerial approval. In addition, the OSC has introduced a local blanket order providing a Self-Certified Investor Prospectus exemption effective October 25, 2025. The OSC's local order is consistent with the harmonized Self-Certified Investor Prospectus Exemption that was announced by the CSA earlier today.  

The OSC TestLab will continue to collect information to help evaluate the updated initiatives and invite perspectives from the participating businesses and investors and other key stakeholders in the early-stage capital-raising ecosystem.

For details on these initiatives, please visit the Innovation Office website at oscinnovation.ca/TestLab.

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at https://www.osc.ca.

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SOURCE Ontario Securities Commission

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