This presentation gives an overview of the steps involved in acquiring funding for a cleantech company, including sources of funding, typical early financing transaction challenges, as well as existing government programs.
2. Funding Your Cleantech Company From
Idea to Manufacturing – Three Phases
• Private Company/Startup – investors are friends, family, angel
investors, government funding, venture capital
• Expansion Capital – investors are strategic investors, mezzanine
financing, subordinated debt
• Public Company – investors are the public, institutions, mutual
funds, pension funds through initial public offerings and other
financings on a stock exchange
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5. Angel Investment
• Why – significant experience and expertise/validation
• When – product development and early commercialization
• How – loan/convertible loan/preferred shares
• Who – high net worth individuals who are often also successful
entrepreneurs
• e.g. National Angel Capital Organization (York Angels, Maple
Leaf Angels, Golden Triangle Angelnet)
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6. Government Funding
• Why – bridge funding to early revenues, acquisition or VC
• When – IP and product development, early commercialization
• How – repayable or non‐repayable grant/loan/convertible loan
(secured or unsecured)
• Who – federal and provincial government programs
• e.g. SDTC – (Sustainable Development Technology Canada),
MaRS Investment Accelerator Fund, Ontario’s Innovation
Demonstration Fund and Strategic Jobs and Investment Fund
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7. Venture Capital
• Why – significant development, marketing or capital costs
• When – product development, customer engagement and
operational expansion
• How – preferred shares with certain bells and whistles
• Who – professional investment funds with significant capital
and high growth expectations
• e.g. Emerald Technology Ventures, XPV Capital, GrowthWorks,
DBL Cleantech Capital, Ventures West
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11. Government Programs
• SDTC Tech Fund – research and commercialization projects ‐
non‐repayable contribution
• SDTC NextGen Biofuels Fund – commercial scale demo projects
‐ repayable from free cash flow over 10 year period after
project completion
• Ontario Innovation Demonstration Fund (IDF) – grant program
– 50% of eligible costs, from $100K to $4M – funding for pilot
demo projects
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12. Government Programs
• MaRS Investment Accelerator Fund (IAF) – up to $500K in a hybrid
equity/loan
• Ontario Centres of Excellence (OCE) – Centre for Commercialization of
Research and other commercialization programs – up to $250K
• Strategic Jobs and Investment Fund (SJIF) – grant and loan program – at
least $10M in eligible costs or 50 new “high value” jobs
• Eastern Ontario Development Fund (EODF) – grant program for businesses
with at least 10 employees, 15% of eligible costs, minimum project cost =
$500K
• FedDev Ontario – Investing in Business Innovation – up to one‐third of
eligible project costs, up to $1M in repayable contributions for
commercialization activities
• Ontario Emerging Technology Fund (ETF) – co‐investor with qualified VCs
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13. Other Government Assistance
Ontario Network of Excellence
The Ontario Network of Excellence (ONE) is a
collaborative network of organizations across Ontario,
designed to help you commercialize your ideas.
Whether your are an innovator, a technology‐based
business, entrepreneur, or researcher, ONE will
connect you with services and programs to help you
innovate and gain a competitive advantage.
www.oneinnovation.ca
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