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ADM3313B Financing Your Venture
ADM3313B Financing Your Venture
ADM3313B Financing Your Venture
Financing
Your Venture
Stephen Daze
1. Debt
Debt:
Loans
Lines of credit
Mortgages
Credit cards
Etc.
Characteristics
Money
Sources of financing
Canada
http://www.canadabusiness.ca/eng/
Business
Development Bank:
http://www.bdc.ca/en/Pages/home.aspx
Banks:
http://www.royalbank.ca/busindex.html
http://
www.tdcanadatrust.com/products-services/banking/inde
x-banking.jsp
https://www.cibc.com/ca/small-business.html
Summer
Company:
http://
www.ontariocanada.com/ontcan/1medt/sma
llbiz/en/sb_ye_summerco_en.jsp
Canadian Youth Business Foundation
http://www.cybf.ca/
2. Equity
Equity:
Investment
Angel Investment
Venture Capital
considered charity
Venture Capital
Firms
Industry
Type and size of deal
Size of return necessary (1/10 = successful)
Venture Capital
Key Issues
Process
Due Diligence
Valuation
Term Sheet
Exit
Entrepreneur Considerations
Ownership %
Long term ownership (exit)
Control
11
Angel Investors
Typically
13
Rank
by
Angels
Rank
by VC
Enthusiasm of entrepreneur
Trustworthiness of
entrepreneur
Expertise of entrepreneur
Quality of product
10
Niche market
16
10
11Osnabrugge & Robinson
* Angel Investing
14
Financing
Types
Seed
Capital
Sources
Personal
Love Money
Angels
Start Up
Financing
First
Stage
Second
Stage
Mezzanine
Bridge
Financing
IPO
Angels
Angels
Venture
Capital
Venture
Capital
Venture
Capital
Banks
Financial
Markets
15
More Information
Canadian Venture Capital Association (
www.cvca.ca)
National Venture Capital Association (
www.nvca.org)
BDC Venture
http://www.angelinvestor.ca/
What I learned, pitch deck:
http://www.techvibes.com/blog/investo
r-deck-transparency-and-lessons-learn
ed-2014-01-16?goback=%2Egde_5037848_m
ember_5829679035365490689
#%21
3. Bootstrapping
o
o
Advantages
Disadvantages
Leverage Government
Programs
IRAP
Look for:
Fed
Dev Ontario
Ministry of Economic Development and
Employment
Go find a customer
Focus on cash
Market penetration
Sales/marketing channels
Product credibility
Joint bidding on projects
Accelerate time to market
Geographic expansion
Business experience
Enhance company status
for credit
Deal with service providers for low
rates
Make use of below market rent space
Barter your products or services
Dont abuse them
team:
You:
Other:
Buy
Financing Options
1. Debt: cash now for repayment (with
interest) later.
2. Equity: cash for a piece of the business.
3. Bootstrapping: piecing it together on
your own.
http://
ecorner.stanford.edu/authorMaterialInf
o.html?mid=2392