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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