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Venture capital is money invested to finance a new firm

Venture capitalists are investors who are prepared to back an untried company in return for a share of the profits

An angel investor is a wealthy individual who invests in early-stage ventures

Venture capitalists know that the success of a business depends on the efforts its owner-managers put in

Typically, restrictions are placed on the management and venture capitalists advance the funding to the firm in stages, rather than all upfront

Venture Capital Companies – companies that provide capital to new innovative companies

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Types of Venture Capital Funds◦ Private independent firms◦ Labour-sponsored funds◦ Corporate venture capital funds◦ Government run funds◦ Institutional funds

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Stages of Development ◦ Seed stage◦ Start-up stage◦ Expansion stage ◦ Acquisition/buyout stage

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Venture Capital investment activity by sector

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Venture capital exits Angel investing Financing under the Canada Small Business

Financing Act Business Development Bank of Canada Regional and provincial Lending programs

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