While attending a FedDev Cambridge event with Gary Goodyear, The Minister of State for Science and Technology presenting, the Southern Ontario Advantage Programs were discussed and summarized. We, as business owners, were able to get a glimpse in the initiatives and how FedDev and The Economic Action Plan are creating programs to encourage growth and provide expansion financing options.
A new initiative highlighted was the program called – Investing in Business Innovation.
Summarized details include:
- Amount: Repayable loan up to $1M with 33% contribution from federal government based on a term sheet from an Angel or Venture Capital investor.
- Projects: capitol and employee costs for growth innovation project
- Timeline: 4 year program – just launched
- Eligibility factors: under 50 employees
- Source: FedDev Ontario
The benefit to the business is the potential for a low interest loan as a top-up to that provided by Angel investors. Terms are loan are undefined and could be 3-10 year loan.
Angel Investor Information
With respect to Angels – the one I see the most in this Waterloo region is called the Golden Triangle Angelnet which is part of the National Angel organisation – Ontario’s angel network program. Typical size investments are in the 250k-500k range. Golden Triange Angelnet has no restrictions on types of companies that they can look at, but FedDev’s Investing in Business Innovation program is specifically targeted at commercializing technology.
Their organisation has no specific “eligibility” factors, but they do have a registration and screening process which involves:
- Companies must register through the website Golden Triangle Angelnet in the section on the home page titled “For Entrepreneurs” to provide a company profile and description of its investment opportunity, and
- Be invited to present to our selection committee which screens companies for eventual presentation to our angel investor membership. Investor meetings are held once per month.
How is an Angel or Venture Capital Investor Defined
The qualification rules for an angel or venture capital investor for the FEDEV program called Investing in Business Innovation funding are:
“An angel investor must meet the Ontario Securities Commission definition of an accredited investor. The angel investor must also be a member of an angel investor network in southern Ontario registered with the National Angel organisation – Ontario or another reputable industry association.
A venture capital provider must be registered with the Canadian Venture Capital Association.”
Mentor Works provides support to educate business owners on potential government funding vehicles that are available in Ontario and consulting services to ease the application process. If you would like additional support to complete the application process and learn of others, please do not hesitate to contact us at Mentor Works.
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