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Early Stage Funding February 27th, 2013Marc Castel
Company Development Stages
Bright Ideas RevenuesCommercial Demo
3 Beta Customers
17117
Validation ScaleEfficiencyDiscovery
INTA
KE
EXIT
25Months
Purpose
Bright Ideas RevenuesCommercial Demo
3 Beta Customers
17117
Validation ScaleEfficiencyDiscovery
INTA
KE
EXIT
25Months
validating solving a meaningful problem and whether anybody would hypothetically be interested in solution.
early validation that people are interested in product and willing to pay
refine business model and improve efficiency of customer acquisition process.
drive growth very aggressively.
Purp
ose
Activities
Bright Ideas RevenuesCommercial Demo
3 Beta Customers
17117
Validation ScaleEfficiencyDiscovery
INTA
KE
EXIT
25Months
validating solving a meaningful problem and whether anybody would hypothetically be interested in solution.
early validation that people are interested in product and willing to pay
refine business model and improve efficiency of customer acquisition process.
drive growth very aggressively.
Purp
ose
•Founding team is formed, •many customer interviews are conducted, •value proposition is found, •minimally viable products are created, • team joins an accelerator or incubator, •Friends and Family financing round,• first mentors & advisors come on board.
•Refinement of core features, •initial user growth, metrics and analytics implementation, •seed funding, •first key hires, •pivots (if necessary), •first paying customers, •product market fit.
•Value proposition refined, •user experienced overhauled, •conversion funnel optimized, •viral growth achieved, •repeatable sales process and/or scalable customer acquisition channels found.
•Large A Round, •massive customer acquisition, •back-end scalability improvements, •first executive hires, •process implementation, •establishment of departments.
Activ
ities
Funding Stages
Bright Ideas Revenues
GovFoundersFamily & Friends
Commercial Demo
AngelsGovernment
AngelsGovernmentDebt
3 Beta Customers
17117
Validation ScaleEfficiencyDiscovery
INTA
KE
EXIT
25Months
VentureCorporate
Founders: $150k Seed: $600k Angel: $900k Series “A”: $3,000k
Discovery
Company Development Stages17117 25Months
Name Source Terms $Amt Note
Summer Company Government Grant 3k .ontariocanada.com/ontcan/1medt/smallbiz/en/sb_ye_summerco_en.jsp
OCE (college-university) Government Grant 150K oce-ontario.org/programs/commercialization-programs/market-readiness
JumpStart Government Grant 25k Need matching $ and mentor. Run through AC
LaunchPad Angel Investment 10-50K Competition
CYBF Government Loan 15k Requires 2 yr mentoringcybf.ca
BDC Institutional Loan 30k Run through CYBF
Hyperdrive Communitech Inv+Loan 40k hyperdrive.communitech.ca
Jolt MaRS Investment 30k jolt.marsdd.com
Extreme Start-ups Angel Investment 18k extremestartups.com
Velocity Philanthropy Grant 25k Competiton velocity.uwaterloo.ca
KickStarter Crowd Funding Pre-Sale variable kickstarter.com
Others
$150
k
Canadian Accelerators and Waterloo Incubators
Hyperdrive(Communitech)
Jolt(MaRS)
GrowLab(Wertz,Brody, Landa, Bailey)
Extreme Startup(Varma, Sharma)
Extreme Ventures
Founder Fuel(Ian Jeffrey)
Real Ventures
Velocity(Van Koughnett,
Kirkup)(University of
Waterloo Incubator)
Accelerator Centre(Ellis, Jackson)
(Incubator)
Location Waterloo Toronto Vancouver Toronto Montreal Waterloo Waterloo / Stratford
Type of Company Tech IT, Communications
and entertainment (ICE) (Cdn
residents only)
TechInternet
TechWeb & Mobile(+ other Tech)
Web & Mobile Tech, full-time Waterloo Student
Products that can be commercialized within 2 years
Mentorship 8 EIRs & 50+ Industry Experts & Service
providers, Wkly mentorship:
technology, funding, legal, PR, marketing
HR
80 Mentors + sponsor support
25+Founders 1on1,
Mentors
Wkly mentorship: technology, funding, legal, PR, marketing & human resources
85 entrepreneurs, executives, VC,
angels
6 mentors and access to
Communitech VSG of 8EIRs
6 In-house advisors (technology, sales,
finances, and marketing). Access to 8 Communitech
VSG EIRs
Funding Up to $200K$40K 7%
+sponsor perks
$30K 6-7%+sponsor perks
Up to $25K 5-10%Possible $150K BDC
$18K 6% $10K + $5K/founder up to $25k 6%
$25k Grant -
Networking Excellent Excellent Good Good Good Excellent Excellent
Time 3months 4 months 4 months 3 months 3 months Every term 24 months
Intakes/x yr 10 / 3x 6-10/ 2x 5-7 Fall 3 / Summers TBD Continuous Intake
Program(all involve U-Build your company/product during prg)
Intensive 1on1s, workshops, events,
Capital collision, trips, Demo day
Presentations, Events, Workshops
Demo day
Wkly spealers, Grow Conf (fall)
Wkly mentorship, wkly product demo
w/ Extreme Labs Showcase Day
lasses, guest speakers, feedback
sessions w/mentors, demo day
Events, workshops, Demo day
Events, Networking, presentations,
workshops, advisory services, mentoring
Incubation 65,000 / 20,000 sq.ft.HUB/AC KW
NYC / Silicon Valley
5,500 sq.ft. MaRS Commons
3 mos Vancouver1 mo SanFrancisco
Toronto at Extreme Venture Partners
Notman HouseMontreal
Communitech Garage
Accelerator Centre private and shared
space
Competitive Advantage
Extremely hands on, available 24/7, full service and
comprehensive prg
Local MaRS support, well
networked
TBD - New Several exits(2 prior years active)
TBD-New Excellent early-stage discovery and
validation program
Goal orient program with accountability
ComparativeUSA Accelerators:
Hyperdrive(Communitech)
Tech Stars(David Cohen)
Y Combinator(Paul Graham)
500 Startups(Dave McClure)
Location Waterloo Boulder, Boston, NYC, Seatle
Silicon Valley Silicon Valley
Type of Company Tech TechWeb and Software
Tech TechFinancial services,
search/social/mobile platforms, productivity, education & language,
family & healthcare, web infrastructure
Mentorship 8 EIRs & 50+ Industry Experts & Service
providers, Wkly mentorship:
technology, funding, legal, PR, marketing
HR
400Panels, coaching & presentations
Once/wk/20minor on demand
140EIRs, Speakers &
Mentors
Funding Up to $200K$40K 7%
+sponsor perks
$6K/founder up to $18K 6%
$20K 7%+$100K YM+$50K RC debt no cap no disc
$10-100K
Networking Excellent Excellent Awesome (Business, VC, Angel)
Excellent
Time 3months 3 months 3 months On-going
Intakes/x yr 10 / 3x 10-12 / 4x 40-60 / 2x 25/3x
Program(all involve U-Build your company/product during prg)
Intensive 1on1s, workshops, events,
Capital collision, trips, Demo day
Wkly dinner w/ presentations,
Demo day
Wkly dinner w/guest speaker, prototype
day, demo day, meet Sequoia day, Events
High TouchDemo Day
Incubation 65,000 / 20,000 sq.ft.HUB/AC KW
NYC / Silicon Valley
10,000 sq.ftBoulder
None(in community)
10,000 sq.ftMountain View
Competitive Advantage
Extremely hands on, available 24/7, full service and
comprehensive prg
Standardized docs, highly
networked and validated
PG Always on, vested interest, rapid
response, company accountability
Vested, well branded
Validation
Company Development Stages17117 25Months
Name Source Terms $Amt Note
Golden Triangle AngelNet
Angel Equity 300k Sept-Junegoldentriangleangelnet.ca
Communitech Fund LP Equity/Loan 75k Technology companiescommunitech.ca
Angel OneInvestor Network
Angel Equity 200k angelonenetwork.ca
York AngelInvestors
Angel Equity 200k yorkangels.com
Georgian Angel Network Angel Equity 150k georgianangelnet.ca
Niagara Angel Network Angel Equity 100k niagaraventureforum.com
S.W. Ontario Angel Network Angel Equity 100k swoangel.com
FedDev IBI Government Loan 0% 999k 1:2 match for “projects” backed by Angel or CVCA
Fed Dev SOFII Government Loan 8% 250k+ Loan to scale to min of 50 employees
Rogue Angels & Clubs Private Various 50k+ High net worth individuals
Pitch Competitions Various Various 1-50k Laurier Entrepreneurship, TieQuest, etc.
Angel List Angel Investment - angel.co
Others
$600
k
Efficiency
Company Development Stages17117 25Months
Name Source Terms $Amt Note
Angel Syndicates Angel Equity 1,000k+ For larger deals 500k-1.5m
MaRS IAF Institutional Conv. debt 500k Ontario emerging Technology companies
Golden VenturesPartners
Private Venture Equity -500k Mobile
IRAP Government Grant 10-250k For various projects, new hires, IP filing, R&D
Rho Ventures Private Equity Equity 50k Energy, Health, IT, Communications, Media
Extreme VenturePartners
VC Lite Equity 150k Tech. Provide additional management expertise
BDC Sub-Debt Government Sub-Debt 250+ Need $1m annual revenue
Expresso Capital SR&ED Factoring Debt Finance SR&ED &MRR
Mantella Venture Partners VC Equity Up to 500k
Mobile and internet. Hands on managment
MaRS BAP Government Grant 20k Embedded Executives and projects
OCE Market Readiness
Government Grant/Equity 190k Commercialization projects for academia
Corporate VC Funds Corporations Various 400k+ Specific shopping lists of technology
Others
$900
k
Others
Scale
Company Development Stages17117 25Months
Name Source Terms $Amt Note
OMERS Ventures Institutional Equity 500++ Lifecycle funderomersventures.com
iNovia Capital VC Equity 500++ Technology Companies syndicated “A” rounds
Klass Capital LP Equity 2,000+ High Growth SaaSklasscapital.com
BDC Venture Capital VC Equity 1,000+ www.bdc.ca
Round 13 Capital LP Equity TBD round13capital.com
Plaza Corp LP Equity 500+ Technology Companies plazaventures.ca
Best Funds LP V. Debt 1000+ Short-term venture debt for tech cos. bestfunds.ca
Comerica Investment Bnk V. Debt 1000+ comerica.com
Summerhill VenturePartners
LP Equity TBD Wireless, digital media, ITC summerhillvp.com
Georgian Partners VC Equity 5000+ SaaS Syndicated “B” rounds georgianpartners.com
Tandum Capital VC Equity 5000+ Tech. Mostly “B” roundstandemexpansion.com
Various Corporations Corporations Acquisition TBD Mostly talent and/or technology acquisition
$3,0
00k
Validation ScaleEfficiencyDiscovery
INTA
KE
EXIT
Real Tech Example
Angels/VC
$500kAngels
$700kAngels
$330kFamily &
Friends$50k
2007 Dec 2010 Feb 2011 Dec 2011 2013
SR&ED
$9k
Founders$120k
Institutional IAF
$500k
Fed Dev IBI
$740k
Gvmt Grants
$136k
2014
Series A
$2-5m
SR&ED
$300K
Gvmt Grants
$223k
SR&ED
$210KSR&ED
$49KSR&ED
$21