BC Venture Capital Programs
Upcoming SlideShare
Loading in...5
×
 

BC Venture Capital Programs

on

  • 1,930 views

Presentation from \'EBC Explained\' webinar on May 9, 2009. Includes info on all BC (and some Federal) investment programs.

Presentation from \'EBC Explained\' webinar on May 9, 2009. Includes info on all BC (and some Federal) investment programs.

Statistics

Views

Total Views
1,930
Views on SlideShare
1,928
Embed Views
2

Actions

Likes
0
Downloads
1
Comments
0

2 Embeds 2

http://www.slideshare.net 1
http://localhost 1

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

BC Venture Capital Programs BC Venture Capital Programs Presentation Transcript

  • Venture Capital Programs
  • BC Venture Capital
      • BC companies are the fastest from founding to exit of any jurisdiction in North America at 41 months
      • BC companies have highest exist values per $1,000 GERD of any jurisdiction in North America at $494
      • BC has highest exit values per $1 of venture capital investment of any jurisdiction in North America at 3.04 using a rolling 5 year average
  • BC Venture Capital Update - 2008
      • BC increased its share of venture capital invested in Canada in 2008 to 19% compared to the other provinces and territories
      • $259 million of venture capital was invested in 51 companies in BC in 2008
      • The Investment Capital Branch's Venture Capital Programs facilitated over $34 million of the above ‘venture’ investments
      • An additional $70 million of ‘angel’ investments was facilitated by the Investment Capital Branch's Venture Capital Programs in 2008
    View slide
  • Venture Capital Programs’ Objectives
    • “ The Venture Capital Programs are designed to encourage investors to make equity capital investments in British Columbia small businesses that will enhance and diversify the provincial economy.” 
    View slide
  • Access to Capital – ‘J-Curve’ {Venture Capital Programs}
  • Tax Credit Budgets $30m tax credits available allows EBCs and VCCs to raise $100m of equity capital annually
  • Direct Investment: EBC
    • EBCs can raise up to $5M maximum
    • Raise equity capital directly from investors in accordance with BC Securities Act
    • Investors receive 30% tax credits subject to 5-year hold period
  • Portfolio Investing: VCC
    • VCCs raise equity capital from investors in accordance with BC Securities Act
    • Investors receive 30% tax credits subject to 5-year hold period
    • VCCs must invest 80% of capital raised within 2 years in ESBs
  • EBC/ESB Eligibility Criteria
    • Permanent establishment in BC
    • Max. 100 employees
    • Min. 75% BC payroll
    • Min. $25,000 in equity capital
    • Substantially engaged in prescribed activity
  • Prescribed Business Activities
    • 50% or more of companie’s assets and expenses used towards:
            • Manufacturing and/or processing
            • Destination tourism
            • R&D of proprietary technologies
            • New media
            • Clean technology
            • Community diversification
  • Uses of Capital
    • Equity capital raised must be used for business development expenses
    • Prohibited uses include lending, repayment of debt, redemption of shares, and payment of dividends
  • Equity Shares
    • Issued from treasury in consideration for cash
    • May or may not carry voting rights
    • May have warrants, options rights attached
    • Cannot create debt between shareholder and business
    • Returns from profits or gains
  • Eligible Investors
    • Individuals
      • => earned income in BC
      • => claim up to $60,000 per year in tax credits
      • => carry-forward unclaimed tax credits for four years
    • Corporations
      • => permanent establishment in BC
      • => claim tax credits against BC taxes payable
      • => carry-forward unclaimed tax credits for four years
    • Eligible investors cannot own 50% or more of business’ voting shares combined with associates or affiliates
  • Other BC Government Programs
    • Working Opportunity Fund => $180 million fund for investing in early stage companies
    • Renaissance Capital Fund => $90 million managed by independent fund managers
    • Innovative Clean Energy Fund => $25 million fund for innovative clean technology projects
  • Federal Government Programs
    • Community Futures BC => small business and pooled investment loans
    • NRC Industrial Research Assistance (IRAP) Program => technical and business oriented advisory services along with potential financial support
    • Scientific Research and Experimental Development (SRED) Program => tax incentive program to encourage R&D
    • Business Development Bank of Canada (BDC) => venture capital programs focused on technology-based businesses
    • Sustainable Development Technology Canada (SDTC) => funding for the development of clean technologies
  • Contact
    • Dara Landry, B.Comm., CGA
    • Portfolio Manager
    • Investment Capital Branch
    • Ministry of Small Business, Technology,
    • and Economic Development
    • Toll free: 1.800.665.6597
    • Direct: 250.952.0644
    • Fax: 250.952.0371
    • Email: [email_address]
    • Web: www.equitycapital.gov.bc.ca