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Summit 05 Presentations 13a Inglese, Robert


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  • Transcript

    • 1. BDC Technology Seed Investments NAO Summit 2005 Ottawa, October 23-25 Business Development Bank of Canada By Robert Inglese
    • 2. BDC
      • Established in 1944
      • To support Canadian entrepreneurship and be a complementary lender in the market
      • Financial and Consulting Services to SME’s
      • Term-financing, Sub-fin. and Venture Capital
      • 90 Branches and 20 Entrepreneurship Centers
      • $9.5 billion assets and 25,000 customers
      … we make a unique and significant contribution to the success of dynamic and innovative entrepreneurship for the benefit of all Canadians
    • 3. BDC Venture Capital
      • Established in 1975
      • Technology businesses with high growth potential and positioned to become dominant players in their markets
      • Every sector of science & technologies
      • $600M in 200 portfolio companies across Cdn
      • $125M in 14 venture capital funds
      • Focus on Seed and Early-stage (or pre-rev.)
      • Top quartile performance
      … we have the experience and expertise, and we are patient!
    • 4. BDC’s Newest Initiative
      • $100M to create 5 Seed funds in Canada
      • BDC to invest $20M in each fund
      • Matching $ with other fund providers
      • Seed and pre-seed focusing on commercialization of R&D innovations
      • First-time funds with experienced investment managers (VC and Operating experience)
      • Managed by VP Funds Investments
      … leveraging our reach!
    • 5. BDC Technology Seed Investments
      • Established in 2002 with a $100M mandate
      • Focus on commercialization of technology innovations enabling outstanding value-proposition and high-growth market
      • We invest with People: Pathfinders to success!
      • – to identify the best business opportunity;
      • – to bring the right product to leading customers;
      • – to forge competitive advantage, and;
      • – lead to next round financing and profitability!
      … excellent partner for the creation and acceleration of technology businesses!
    • 6. TSI Group Achievements to Date
      • 850 potential projects (since 2002)
      • $55M in 35 Companies (+$15M from BDC VC)
      • $25M from co-Seed Investors (85% led by BDC)
      • $75M in Round ‘A’ VC Financings from other investors into 6 Companies
      • 22/35 University and National Lab spin-outs
      • 9/35 Angel Investor-Back Companies ($5M)
      • One failure ($500K)
      … we’re above plan!
    • 7. We Invest With Angels - Some Observations
      • Angels were already invested in all of our angel-back businesses
      • BDC as sole institutional investor in most of them – extending the runway by 2 to 5 x to get to Series ‘A’
      • Angel groups led by experienced business people in most cases
      • Overall – POSITIVE – Alignment of interest and company building – SO FAR SO GOOD !
      … We’ll continue !
    • 8. What We Do (Preferences)
      • We invest alone in most cases, but we keep the subscription open for new investor(s)
      • Very challenging to match with the right people
      • Official Position (Board Seat, Advisor, Coach)
      • We prefer Entrepreneur-Investors who accept someone else holding the steering wheel
      • Too risky for Family&Friends
      • Voting Trust among the individuals to keep the cap-table simple, and ease decision making
      … partnering is about people and common objectives!
    • 9. Questions? Thank You