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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Business Development  Bank of Canada  (BDC) offers venture capital to Canadian pioneering entrepreneurs and start-ups.

Business Development Bank of Canada is a federal government owned financial institution with a mission to help develop Canadian businesses through financing, venture capital and consulting services, with a focus on small as well as medium-sized enterprises. BDC’s  entrepreneurial and progressive corporate culture exists to support to Canadian businesses and accelerate the success of entrepreneurs.

Venture Capital is available to businesses at any stage (from seed to late/growth stage investments) involved in:

1. Green Energy Production
2. Environmental and Green Technologies
3. Manufacturing Innovations
4. New Electronics
5. Advanced Materials
6. Improvements in broadband transmission/bandwidth
7. Optical and Wireless Networking Technologies
8. Innovative Life Sciences
9. Novel Information Technologies

Typical initial investments range from $500 000 to $3 000 000 as part of a financing round in the $1 000 000 to $10 000 000 range. In return BDC will ask for up to a 49% control of the company and a position on the Board of Directors.

With over 1000 annual request for venture capital financing, the selection criteria and process is extremely competitive with only a few businesses receiving funding. In order to increases the chances of being selected the business must have a leadership team with excellent credentials along with an attitude that wishes to work alongside BDC,  a unique competitive advantage with strong barriers to entry, significant intellectual property, technologies with broader applications than a single product or market, viability for high growth plus high revenues,  job creation, a clear exit strategy, commitment from other investors and detailed business plan.

Companies wishing to apply for BDC Venture Capital must present business plan. Applicants that demonstrate potential will be asked to submit to a due diligence check and invited to a series of meetings discussing a venture capital ask and possible offer. Once an agreement is reached, funds can be invested. This entire process usually takes 3 to 6 months to complete.  

More information can be found at www.bdc.ca

Please feel free to contact me should you have any questions or comments. I can be reached at jorge@jorgeleclair.ca

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As the world of fundraising evolves and becomes more interconnected, successful non-profit organizations are increasingly in need of a new, more holistic approach to growing their organizations.

What is a Holistic Fundraising Strategy?

A holistic fundraising approach is a strategy that aligns fundraising, financial management, communications and organizational polices. This is in contrast to pursuing these elements on their own, which unfortunately happens all too often.

Fundraising

Generally, fundraising is a major strategic focus for most organizations. Effective fundraising should first involve the creation of a “Fundraising Portfolio” – a fundraising plan consisting of diversified fundraising channels. (grants, galas, third party events, capital campaigns, high net worth donors, corporate partnerships, membership campaigns, etc.) A Fundraising Portfolio will present a coherent strategy that balances the associated investment of organizational resources and the expected generated revenues of each fundraising initiative. The value of a Fundraising Portfolio is that it provides a strategic organizational direction and promotes organizational sustainability because it prevents reliance on just one or a few revenue sources.

Another important aspect of fundraising is adopting a fundraising strategy founded on the belief that strengths and weaknesses can be leveraged by building strong networks. Thus, it is vital that foundations endeavour to create winning teams; often consisting of charitable organizations, high net worth donors, politicians, grassroots groups, businesses and funders.

Finally, fundraising is too important a task that it should not be left to just the fundraising department; it is something that everyone in an organization should be part of. For example, obtaining grants require a good proposal describing an innovative program, metrics, community support and sustainability. Therefore, a good grant proposal requires the input from program staff, participants, and community stakeholders; furthermore, it should be supported by strong board policies as well as financial statements.

Financial Management

With greater success in raising capital, a non-profit organization must be able to successfully manage its capital.

Proper financial management must be a comprehensive process as opposed to independent organizational initiatives. An Investment Policy Statement (IPS) is the first step in financial planning. An IPS describes how funds will be investment and managed according to future goals as well as anticipated needs; additionally, it includes a strategy than incorporates contingency plans. (For example what do to with the invested funds should there be a drastic change in the market.)  An IPS should also be aligned with a Fundraising Portfolio. An IPS is expected by individual high net-worth donors, corporate partners,  or planed giving arrangements. An IPS is especially important for a capital campaign. Without an IPS an organization looks immature and unprofessional. Donors want to know what policies exist to safeguard the proper use of their funds.

Communications

All foundations have a message that needs to be communicated; good communication is about reaching and connecting with the target audience.

A focal point are Web 2.0 communications channels that should include:

• a SEO optimized website that captures the attention of visitors
• an opportunity for online giving
•  a blog or e-newsletter that shares important news and information
• Twitter and Facebook pages that allow for discussion of issues with your supporters

Whether it’s an Annual Report, AGM Presentations, a video advertisement on YouTube or a thank you card to volunteers, all communications initiatives should be linked into a cohesive message.

Constant communication builds a brand and a solid brand is vital for growth. The end result of a good brand is name recognition, awareness of your message among the public, increased media coverage and a sense of trust from potential donors. A good brand will help your organization recruit and retain the best people.

Events are an important aspect of communications. Events can celebrate organizational achievements, recognize donors, showcase programs, etc. An expert event planner not only provides superior event services, they also provide media and public relations expertise.

Organizational Policies

Effective organizational polices integrate seamlessly with fundraising, financial management and communications. Job descriptions must exist. By-laws should be to update. Financial statements should be clear and also up to date. Most importantly, all non-profit organizations must have a multi-year strategic plan.

How to create a holistic fundraising strategy?

A good start to creating a holistic fundraising strategy would be having a team meeting with staff from all departments and discussing how to better collaborate to achieve goals. This process should be led by an experienced management.

For organizations that lack experience, it is best to find a professional team that offers fundraising, financial management and communications consulting. Such teams are made up of individual firms (or self employed professionals) that have a history of working together in order to better serve their clients. Usually such a team will consist of financial professionals, communications specialists, fundraising consultants, event planners and web experts.

Please feel free to contact me for questions or advice on how to implement a holistic fundraising strategy. I can be reached at jorge@jorgeleclair.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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