🧭 How to Invest in Great Companies (and Build a Better Capital Market)

Some events are worth more than a celebration. FrontFundr’s 10th anniversary, held at OneEleven in Toronto early June, was exactly that—a gathering of founders, funders, and believers in a more inclusive innovation economy.

In ten years, FrontFundr has processed close to $300M in investments from nearly 20,000 investors into Canadian startups. That number should stop you in your tracks. It’s not just a milestone—it’s a transformation.

Share

I was introduced to Peter-Paul Van Hoeken and FrontFundr nearly a decade ago. I was already familiar with the model, having invested in and through WeFunder in the U.S. I became an investor in FrontFundr itself, joined the board, and stayed on for several years. What struck me from the start was that this platform wasn’t just about democratizing access—it was about rethinking how early-stage companies raise capital.

💡 Crowdfunding as a Strategic Capital Tool

I’ve long believed in equity crowdfunding. It’s not right for every company or every moment—but when thoughtfully used, it can be more forgiving than institutional capital, especially for B2C businesses. The raise doubles as a marketing campaign, and the pressure for hyper-growth exits is often lower than with VCs.

It also comes with no risk of being strong-armed out of your company—a real concern in traditional VC scenarios.

I had a great conversation with Brice Scheschuk on this very topic: the pitfalls of raising institutional capital too early. VC has a time and place, but founders should understand the trade-offs. The pressure for speed, the power dynamics, and the dilution risks can be intense. Crowdfunding offers an alternative route—aligned, founder-first, and community-driven.

Share

That alignment is something I also see in another capital model I believe in: non-dilutive revenue-based financing. I’ll be hosting Melissa Widner, CEO of Lighter Capital, on the podcast next month. Lighter provides debt capital to tech companies—another strategic tool that can be used alongside equity crowdfunding.

The beauty of both Lighter and FrontFundr? They’re young, agile platforms that have had to raise capital themselves. They understand their clients, because they are their clients. They’re not just service providers—they’re co-builders.

🧠 Angel Investing, Founder Character & Cap Table Wisdom

At the event, Peter-Paul interviewed Joe Canavan, Angel Investor of the Year. Joe has that rare combo of investor rigor and entrepreneurial empathy. He shared his approach to identifying what makes a company investable today:

• Board of advisors: experienced, strategic, and founder-supportive

• Cap table quality: filled with smart, value-adding investors

• Market size: of course—but not before founder character

• Character: the top filter. Always.

Joe’s approach resonated deeply. He meets founders’ families. He looks for alignment in values. He knows it’s a long journey—and that you need to like the people you’ll be stuck with. And he’s seen enough to know the real risk isn’t just the business plan—it’s whether the founder will do the right thing when things get hard.

🔍 What I Look For in Founders

Like Joe, I’ve developed my own mental checklist. A few quick patterns I’ve seen over the years:

• Tech-heavy founding teams often struggle to commercialize. I look for a balance between business acumen and technical depth.

• Cultural background influences go-to-market strategy.
  Americans and Israelis tend to lead with sales. French and Canadians often lead with product. That matters.

• If a company has raised a lot of VC? I assume there’s waste.

For early-stage investments (crowdfunding or otherwise), I focus on founder mindset, capital efficiency, and the ability to evolve. Pattern recognition is great—but people recognition is better.

One point that I wish more investors considered: early investors often get diluted later by institutional capital. It takes an ethical CEO to protect the first checks—the believers who backed them when no one else would. And that’s why values matter. A lot.

🎯 Final Thought: Capital That Compounds (and Connects)

FrontFundr’s 10-year milestone is a reminder that capital can be inclusive, strategic, and aligned with founder success. You just need the right structure, the right support—and the right people.

Platforms like FrontFundr and Lighter Capital are building something better. Something more human. Something that doesn’t just generate returns—but builds companies we actually want in the world.

Congrats to Peter-Paul and the FrontFundr team. And to all the founders out there: raise wisely, build boldly, and never underestimate the value of character.

Peggy Van de Plassche is a seasoned advisor with over 20 years of experience in financial services, healthcare, and technology. She specializes in guiding boards and C-suite executives through transformational change, leveraging technology and capital allocation to drive growth and innovation. A founding board member of Invest in Canada, Peggy also brings unique expertise in navigating complex issues and fostering public-private partnerships—key elements in shaping the Future of Business. Her skill set includes strategic leadership, capital allocation, transaction advisory, technology integration, and governance. Notable clients include BMO, CI Financial, HOOPP, OMERS, GreenShield Canada, Nicola Wealth, and Power Financial. For more information, visit peggyvandeplassche.com.