Innovacorp Overview

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  • 11/15/12
  • 11/15/12
  • 11/15/12
  • 11/15/12
  • 11/15/12
  • 11/15/12
  • 11/15/12
  • Innovacorp Overview

    1. 1. Innovacorp OverviewPaul RichardsNovember, 2012
    2. 2. Innovacorp Strategic GoalTo fuel sustainable economic growth by enabling early-stageNova Scotia knowledge-based companies to accelerate thecommercialization of their technologies and increasecompetitiveness in export markets.
    3. 3. Innovacorp StrategyInnovacorp delivers business development support, venture capital investmentand incubation to Nova Scotia companies in early stages of development.
    4. 4. Why Venture Capital?• Between 1993 and 2003, 967,000 net new jobs were created in Canada.• Small high-growth firms accounted for 585,000, or 60 per cent, of these jobs.• Knowledge-based sectors are over-weighted among high-growth firms.• Venture capital is critical for early-stage knowledge-based companies. In fact, venture-backed companies represent: • 83% of the market capitalization of Canadian ICT companies • 38% of the market capitalization of life sciences companies • 34% of the market capitalization for clean technology companies
    5. 5. Why Incubate?• Studies show that up to 90 per cent of small businesses fail in the first five years of their founding.• About 87 per cent of companies that graduate from a business incubator are still doing business today.• These graduates have seen an increase in sales of more than 400 per cent.• Incubation is an important tool that helps entrepreneurs bridge “the valley of death” and develop sustainable growth.• Incubators are a critical part of the early-stage ecosystem in all North American centres with thriving knowledge-based economies.
    6. 6. Why Provide Support?• The development and commercialization of ideas requires careful planning and execution.• Failure to understand and implement a strategy will limit success.• Ensure you are following the right steps at the right time.• Exposure to the economic infrastructure design to support technology start-ups.
    7. 7. Innovation ecosystemClients take advantage of ecosystem that includes opportunities for networking, mentoring, customer acquisition, business development and funding.
    8. 8. 8 Venture Capital Operations • 7 investment professionals • Review ~300 companies/year • Investment criteria based on prospects for significant financial returns • 8-10 investments/year • Created Scientific and Technology Advisory Council (STAC) to deepen technical due diligence capabilities • Try to provide advice and feedback to companies we don’t invest in; help with navigation to other support resources Inv. Source Screen DD Deal Close Mentor Proc.
    9. 9. 9 Case Study : GoInstant • Jevon Macdonald joined Innovacorp as Entrepreneur in Residence in July 2010 • Worked closely with the investment team while exploring opportunities of his own • Met a Sydney-based engineer (Gavin Uhma) who had developed a compelling internet infrastructure technology • Built the business case and go-to-market strategy for the technology • Co-founded GoInstant with Uhma in Spring 2011 • Closed $1.7M seed round of financing in August 2011 from Silicon Valley-based venture firms • Freestyle Capital, Baseline Ventures, Embarcadero Ventures, Greylock, Innovacorp ($100K), friends and family • Successfully resisted investor pressure to relocate • Acquired by Salesforce.com in July 2012
    10. 10. Thank you!

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