Maple Leaf Angels is Ontario’s largest and most active angel investor group. Since its founding in 2007, Maple Leaf Angels has invested $6m in start-ups. Maple Leaf Angels is made of about 40 accredited high net worth individuals, business leaders and entrepreneurs mostly from the Greater Toronto Area.  A partnership with the RIC Center opened up a chapter to serve the west GTA.

Maple Leaf Angels hold 10 pitching rounds annual, with an average of about 3 companies per pitch. Maple Leaf Angels is not bias towards any one industry; a start-up from any sector can apply. It is up to individual investors to decide in who they wish to invest and how much. Typically, most investments are in the range of $200 000 to $400 000 and act as the required capital to accelerate the company forward significantly. Investors receive equity or convertible debt.

Applying for the opportunity to pitch is done through an online submission of a business plan. Submission can be done anytime, there are no deadlines. Maple Leaf  Angels acknowledges that it is beneficial to have someone to known to Maple Leaf Angels act as a referral; the referral can be an innovation center (such as MARS), professional service firm (such as  Mckinsey and Company,)  employee of a government funding program or someone who has successfully pitched to Maple Leaf Angels. From around 40 monthly submission, 4 to 6 companies are selected for a 15 minute pitch to a review committee, the top 3 companies are invited to present to investors.

While a perfect business plan is a definite must, having a persuasive pitch is vital. The pitch should focus on the benefits to investors – market size, projected revenues, core competencies, barriers to entry, return on investment and an exit strategy.

From the time that a start-up pitches to investors, it can take between 1 and 4 months to receive a check depending the length of due diligence, negotiations and preparation of necessary legal documents.

Aside from receiving capital, angel investors often offer other benefits such their network of contacts and mentorship.

Please feel free to contact me should you have any questions about business plans or pitching to investors. I can be contacted at jorge@jorgeleclair.ca

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The purpose of the Green Innovation Award is to inspire entrepreneurs to pursue green business models that serve as solutions to environmental challenges and to assist in taking green business at the seed stage to the market.

Established businesses are not eligible, however eligible applicants can be individuals, students, inventors or non-profit organizations. Each applicant may only submit one idea.

The application is a 2 stage process, the first stage being applying online with a 1-2 page project proposal; in the second stage selected applicants will be required to present a business plan and present their idea to a panel of judges.

The Green Innovation Award falls under the Toronto government mandate for a better cleaner Toronto. The Toronto Community Foundation is a charitable organization dedicated to improving Toronto; it does so by serving as an umbrella organization that pools organizational capacity resources as well as charitable gifts of donors to create endowment funds and using the investment income to make grants.

More information can be found at www.tcf.ca

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Entrepreneurs, artists or individuals with creative ideas are looking for funding. Somewhere out there are individuals or groups looking to help fund the right ideas. Traditionally, finding each other has not been easy. In this article, I discuss an exciting new website – kickstarter.com, which matches ideas with capital.

Kickstarter.com is an awesome social networking site that uses the power of crowd sourcing to fund creative ideas and ambitious endeavors.

Anyone can create a dedicated page with a pitch for a set amount of funding to support or ”kick start” their project, a deadline (anytime within 90 days) for their fundraising target and how they will reward contributors. Any individual or group from anyplace in the world can give through the website to the project. The only catch is that a project only receives its donated funds (minus a 5% fee taken by kickstatrer.com) if the target amount was reached or exceeded within the established deadline. In cases where projects do not reach their funding amounts, the funds are returned to their original donors. This helps protects the value of donated funds based on the belief that a project is more likely to achieve its goals if it has all the funding it requires. In exchange for backing an idea, individuals receive rewards set by the person or group asking for money. For example, if an artist is looking for funding to record an album, the artist may give each supporter a free CD.

The power of kickstarter.com is the principle that a good idea if communicated well through the power of the internet can spread fast and attract support.

Kickstarter.com believes that a large group of people can be a tremendous source of money and encouragement Aside from giving ideas the chance to be funded, the process of creating an online ask creates an environment where an idea can be enhanced through feedback. Furthermore, the process creates communities by bringing together individuals who would like to support similar innovative initiatives. It also helps a project by building a network of backers who feel invested in ensuring the project’s success.

Why are people giving money to projects on kickstarter.com? I believe it is simply because individuals wish to be part of ideas and causes they feel connected to, but cannot take on by themselves. Offering support is next best solution.

Kickstarter.com should not be seen as “easy money”, rather it is earned money. Not all ideas are funded. Success requires a well thought out idea, a captivating proposal and from the start, potential projects will need to build a relationship with those interested in supporting the project.

Examples of previously successfully funded projects:

Lumi Co. – a start-up business involving an innovative textile printing technology. Asked for $12 000 and raised $12 998.

MakerBeam – a start-up that offers an open source building set (similar to Lego/Meccano/Erector Set but users can help design the elements) Asked for $10 000, raised $17 922 .

On average successful projects pitch and receive total amounts of less than $4000. Funded ideas have been both non-profit and business projects. As the site evolves and grows in popularity, raising funds will likely become more difficult as projects compete and only the most vibrant ideas survive.

In conclusion, if you think you have a kick ass idea, then kickstarter.com might just be the right place to get the required boost.

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A Business Incubator helps grow start-up businesses that demonstrate potential by supporting them with a dynamic program that involves mentoring from business leaders, marketing help, strategy coaching,  introduction to valuable business contacts, funding and assistance with product development.

Business Incubators continue to prove their value to business start-ups and consequently are increasing in both demand and availability.

The goal of a Business Incubator is to help start-ups that show potential but that without assistance would struggle and possibly fail. Business Incubators are set up by business and industry associations that understand the community benefits (such as job growth and economic diversification) as well as the importance of producing young businesses that have a solid path to success. According to the Canadian Association of Business Incubators, “On the average 95% of an incubator’s clients graduate, and 87% of incubator graduates remain in business.”

Acceptance into a Business Incubator is competitive based on meeting eligibility requirements that normally involve a business plan that demonstrates commercial viability, an innovative product and an attitude that is open to coaching. While Business Incubators offer access to valuable resources, the burden is on the entrepreneurs to learn, succeed and invest their own resources as required.

Here is a comprehensive list of Canadian Business Incubators can be found at www.cabi.ca

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As a Business Development Consultant, I am often asked questions and advice regarding writing a Business Plan. In this article, I share answers to common questions.

What is a business plan?

A Business Plan is a strategy for successfully starting and operating a business based on management, environmental, economic, industry, marketing, operational and financial information. It is a map taking an idea from a concept to a revenue generating business. Developing a business plan for a business idea is a way to for entrepreneurs to assess the requirements, challenges and advantages of their business.

What information should a business plan contain?

The content and length of a business plan will vary based on the business, however at a minimum a business plan should be 30+ pages and contain the following sections: (note film projects and non-profit organizations will use a different format which are not discussed in this article)

1. Management – Biographies of management team and board of directors.
2. Business Profile – Vision and mission statement, business registration, business model and company history.
3. Product and Services – Description of products and services being offered.
4. Business Operations – A detailed explanation of how the business will be operated.
5. Industry Analysis – Industry research proving viability – national/regional trends, regulatory requirements, stakeholders, SWAT and competition analysis, risk, success factors, required due diligence.
6. Marketing Plan – 3 year Marketing Plan, including a detailed monthly first year plan.
7. Financial Plan – Detailed financial plan that includes income/revenue, monthly cash flow, break-even analysis and annual balance sheet statements.
8. Implementation Plan – Work plan with measurable, time bound milestones, plus a synopsis of future goals.
9. Funder/Investor/Lender – Offer and proposed return.

In addition to these sections a social enterprise will also include the following sections in their business plan:

10. Organizational Purpose – Description of population served and cause being addressed.
11. Community Impact – Short/long term economic, social, technological and environmental benefits.
12. Organizational Support – Identification of target supporters, donors with a connection with the organizational mission (grassroots and high net worth individuals), development of a fundraising portfolio using both new and current diversified fundraising channels such as government funding sources, corporate partnerships, grants, web 2.0 fundraising, third party events and memberships.
13. Acknowledgement – How the social enterprise will acknowledge supporters.

How should information be presented?

Given the detail required in a business plan, it is reasonable for a business plan to quickly become a lengthy document. However, lengthy documents can be overwhelming to read; therefore it is important that a Business Plan present information clearly and creatively in a way that captures the reader’s attention. To the business manager a Business Plan is a guide, but to lenders, investors, or other stakeholders a business plan is an advertisement that must inspire. Designing a business plan with a creative look, using graphics and diagrams to explain concepts is a must.

Who should develop a Business Plan?

Given the importance of a Business Plan, it should be developed by a business professional. A business plan writer should not be just a writer; rather they should be a business professional with a strong background in finance, marketing, operations, management, research and proposal writing. Their service should not be limited to developing the plan, instead their added value should involving coaching and advice with implementation.

At the least, it is important that a business plan be reviewed and critiqued from an unbiased third person point of view; that is another key service that a business development consultant provides. A Business Plan provides a reality check. For example, it is easy for an entrepreneur to become so excited about their idea that they develop an unrealistic belief in the success of their idea. Business history is full of innovative products that failed because they did not have a clear path to market or insufficient business resources. A Business Development Consultant can also educate a business owner on how to prepare and adapt to the future. I have sometimes been contacted by business owners in a bad financial situation because they did not have a business plan that properly predicted future cash flow needs.

Can a Business Plan help me raise capital for my business?

There are many exciting opportunities for financing including private investors, bank loans, government backed loans, grants, subsidies, hiring incentives and business incubators. All types of funding require presenting a business plan that clearly explains your business concept in away others can understand; it should clearly state what you want to achieve, where you want your business to go and how you plan to get there. However, not all businesses are eligible for funding.

Conclusion

A persuasive, detailed and creatively designed business plan is the first step towards starting a business. The difference between simply having dream and making it real, is the decision to start implementing the dream and remaining dedicated. That is exactly what separates dreamers from entrepreneurs. A Business Plan is the first step in turning imagination to income.

Questions about business plans? Please feel free to contact me at jorge@jorgeleclair.ca

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Launched in late 2009, Rogers Ventures is a “venture capital like” firm focusing on seed funding and early stage investment for Canadian technology start-ups.

Why “venture capital like”? Simple, because while it operates like a venture capital firm that invests funds, it can also offer select technology start-ups with advice, meeting spaces or other in-kind resources. Furthermore, in keeping with Ted Rogers’ desire to drive innovation, Rogers Ventures has a mandate that involves going beyond developing a portfolio of successful companies and investing to promote innovation acceleration in Canadian communities.

Pitching Rogers Ventures is initially done through its website – www.rogersventures.ca

Selected start-ups companies are contacted for a more detailed review, eventually requiring a business plan. Rogers Ventures will probably have a preference towards funding technologies that can contribute to its internet, digital media and mobile communications market. The amount that it will invest in a company is decided on case by case basis.

Examples in Rogers Ventures portfolio companies include Zoocasa, a vertical search product focused on real estate, Thoora, a next generation news discovery service, and GridCentric, a solution for grid computing.

The leadership of Rogers Ventures includes Melinda Rogers – Senior Vice-president Strategy and Development with Rogers Communications, Mike Lee – Vice-President with Rogers Ventures, and Nyla Ahmad – Vice-president, Rogers Ventures Operations.

I would be happy to answer any questions regarding business plan development or investor/VC pitches. I can be contacted at jorge@jorgeleclair.ca

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One of the Ontario’s government hottest business funding programs is the Ontario Emerging Technologies Fund.

The Ontario Emerging Technology Fund (OETF) is a $250 million ($50 million a year, over 5 years, 2009 – 2014) program where the Ontario government co-invests alongside venture capital firms, private investors (angel investors) and investment corporations (i.e. pension funds) towards clean technology, life sciences/health care and digital media/telecommunications.

The program is a powerful opportunity for start-up and existing businesses to attract investment.

The program was established by Ontario’s Ministry of Research and Innovation, whose mission is to develop policy as well as programs that will help commercialize academic research and innovative venture start-ups.

To manage the OETF, the Ontario government established a crown corporation – The Ontario Capital Growth Corporation (OCGC). Its mandate is to manage the interest of the Government of Ontario in the limited partnership known as the Ontario Venture Capital Fund LP (OVCF) and to manage and operate the Ontario Emerging Technologies Fund (OETF).

Investors must first apply to become Qualified Investors from the OCGC. It is relatively easy to become obtain Qualified Investor status. Qualified Investor eligibility criteria includes: sufficient available investment capital, investment portfolio performance history over the last 5 years, strong Ontario footprint and meeting due diligence/ethics requirements. Once Qualified Investor status is achieved, a co -investment proposal is submitted for review. In the case of Angel Investors, a co-investment proposal must be submitted along with an application to become a Qualified Investor. In other words, Venture Capital and Investment Corporations, can become Qualified Investors without having a targeted co-investment opportunity, but Angel Investors must have an immediate co-investment need.

First time co-investment opportunities of up $4 million are available.

Accessing requires either that Qualified Investors approach a business. that a business find a Qualified Investor or that a business find an investor and ask them to apply for Qualified Investor status.

The Fund model is based on a number of design principles that are consistent with achieving the government’s goal and objectives for the Fund

1. Market-based investment decisions – identification of investment opportunities will be undertaken by qualified investors that have a proven track record of success and have been pre-qualified by Ontario

2. Rapid deployment of capital – the Fund will have the ability to make investments directly into companies within a short time frame.

3. Focus on key industry sectors for Ontario – the Fund will focus its investments on sectors of strategic importance to the province.

4. Government’s role as a catalyst – Ontario will act as a catalyst to leverage private sector capital.

5. Ability to make additional investments into an investee company – the Fund will be able to make both initial and follow-on investments to support the ongoing growth of high potential, innovative companies.

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ArtReach Toronto is an innovative youth focused and youth driven program with a mandate to support arts initiatives that engage youth who have experienced exclusion in under-served areas of Toronto.

With strong financial support from all three levels of government, funding organizations and donors, ArtReach has committed to spending $1.2 million over 3 years to support projects that encourage creative expression through quality arts opportunities for youth. ArtReach also provides free youth capacity building workshops on fundraising, leadership and non-profit organization administration.

Much like the Youth Challenge Fund, ArtReach embraces a growing social change philosophy that youth should be involved in the design, funding decisions and evaluations of youth programs. In other words, youth must be a vital part in creating solutions to the issues of youth oppression, disengagement, crime and negative influences.

The idea for ArtReach Toronto was created out of 2004 Intergovernmental Roundtable of Art Funders and Foundations (IRAFF) from the recognition youth in the Greater Toronto Area are increasingly find it difficult to access to relevant cultural arts programs. ArtReach Toronto believes that arts programs have high youth appeal and that quality arts experiences/programs can serve as a powerful engagement method; ultimately improving Toronto’s communities, include the city’s priority neighbourhoods.

ArtReach provides grants to non-profit organizations, individual artists or groups of artists for arts initiatives that provide meaningful youth arts opportunities and engage youth aged 13-29 from Toronto’s Priority Neighbourhoods. Youth must be part of every aspect of the project – design, implementation, management and evaluation. ArtReach also tries to fund arts projects that may not supported elsewhere.

Non-profit organizations are eligible to receive $75 000 over 3 years while individual artists or groups of artists are eligible for $10 000 in funding.

Example programs that ArtReach Toronto has funded include:

Centre for Spanish Speaking Peoples: The Sequel – The program will provide 10 Latino youth with an opportunity to build skills in the art of filmmaking. These youth will have an opportunity to tell their story through the films they develop and screen in the Jane and Finch community. Amount: $24,330

Beyond the Lyrics Youth Resource Centre Inc: Living Through HERstory - a collaborative project that will support young women from Crescent Town to build skills in traditional dance forms, as well as the cultural art form of basket weaving, to develop mouts (Harari baskets) and hats. This inter-generational project also aims to engage young women in discussions around their experiences with respect to identity and familial disconnect. Amount: $17,550

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“Every time I go to a movie, it’s magic, no matter what the movie’s about.”
-Steven Spielberg

The Canadian Film Centre (CFC) offers film development and production grants through its Feature Film Project (FPP) – a development plus production focused mentorship program for emerging Canadian dramatic feature filmmakers.

Established by the Canadian Film Centre in 1992, and acting as Executive Producer, the Feature Film Project is provides supervision and up to 100% of the necessary financing for the development, production, distribution and marketing of dramatic feature films.

The Feature Film Project is awards 2 different grants:

1. Ultra-low Budget HD Feature (projects that can completed with a budget of up to $250 000): For example, High definition (HD) digital format, minimal cast and crew (approx. 2 to 4 principal/lead actors, small/mobile crew),minimal lighting and special production requirements and a flexible schedule. Films must be shot and delivered in HD.

2. Low Budget Feature (projects that can be completed with a budget of up to $500,000): For example, 16mm or 35mm film OR high definition (HD) digital format, 8:1 shooting ratio, approx. 2 to 3 principal/lead actors and 2 to 3 support cast, approx 15 to 25 person crew, and a 15 to 20 day or ‘custom’ schedule. Films must be shot and delivered in HD.

Both programs follow a 2 phase pathway:

Phase 1 – Development: This phase involves an in-depth review of the project including script, story editing, Director’s goals, cast, Production Company, team capacity, post-production plans, distribution and marketing strategy.

Phase 2 – Production Financing: Select project that have successfully completed phase 1 move into phase 2 where they are given the required funds to achieve set goals and screen their film at the box office.

CFC Feature Film Project accepts applications 3 times a year.

Eligibility for Feature Film Project is competitive and the minimum requirements are dramatic feature film not less than 85 minutes in length that are intended for theatrical release and produced/owned by a Canadian company. Preference is given to projects where the writer, director and producer have not individually or as a group made more than one dramatic feature film.

The Canadian Film Centre was founded in 1988 since then it has become an industry leader in developing Canadian talent and pushing the boundaries of film through creative expression as well as the embracing of new technologies. Films from the Canadian Film Centre have shown at prestigious film festivals such as the Cannes and Sundance Film Festivals. Equally impressive is that 25 Genie Award Nominations have been achieved for the cast and crew members working on FFP productions. A key mandate o the Canadian Film Centre is to provide 100% of the financing, creative, professional and administrative experience and mentorship necessary to ensure the successful development, production and marketing of Canadian theatrical feature films.

As an experienced Grant Writer and Consultant, I would be happy to answer any question regarding film funding – jorge@jorgeleclair.ca

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The Law Foundation of Ontario (LFO) is committed to advancing the ideal of a truly accessible justice system through the promotion of legal knowledge, excellence within the legal profession and community participation in the legal system.

The LFO is mandated to use 75% of its revenues to fund Legal Aid Ontario, the remaining 25% is used for discretionary grants that align with its Vision, Mission and Guiding Principles.

The LFO funds programs and initiatives that promote and enhance access to justice for all Ontarians. As such it offers 2 Grant Programs, Small Grants of under $25 000 and Major Grants over $25 000. Grants are open to any secular and non-political Ontario non-profit organization or educational institution. Both grant programs are open to applications at various times throughout the year.

Both Small and Major Grant applications require the submission of a standard grant proposal demonstrating strong organizational capacity, key staff biographies, focused measureable goals/outcomes, strong support from community/non-profit stakeholders, a detailed financial plan and a well thought out implementation work plan. Applying for a Major Grant first requires a Letter of Intent.

According to the LFO, since its founding in 1974, “the LFO has given out over $160 million in grants and over $500 million to Legal Aid Ontario. The LFO’s 33 year history demonstrates a strong commitment to supporting the community and to promoting excellence within the profession. In the coming years, the LFO will work to maintain and support more initiatives and enable the work it has seeded to continue having long lasting and wide ranging impact.”

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