4. Financing Decision – Business Lifecycle
Establishment Phase Growth Phase
Company
Phase
Product concept
Exploration of ideas
Company concept
Market analysis
Formation of
company
Development of
product
Preparation for
production
Detailed marketing
concept
Introduction to
market
First sales success
Expansion of
marketing
outlets and
distribution
channels
Improvement of
production and
marketing systems /
exploitation of
market potential,
entry into new
market areas
Profit
Loss
Investment
Phase Seed financing Development
financing
Start-up financing Expansion
financing
Mature financing
Sources of
Financing
Owners
Angels
Family
Friends
Government
Suppliers
Strategic partners
Early-stage equity
funds
Banks, ABLs
Lessors
Customers
Banks, ABLs
Subordinated
lenders
Venture capital
Banks, ABLs
Subordinated
lenders
Private and public
equity markets
Securitizations
NRC Contribution to Organization (CTO) – Support Orgs & Institutions use IRAP funds to help with early stage questions, ~$5k (Consult). Report belongs to the company.
NSERC Engage Grants - Forge a new R&D partnership with a university researcher, funds university project costs up to $25,000 for 6 months. Decision within 6 weeks. IP company owned.
NSERC Interaction Grants – Meet a new university professor, award is up to 3 months & $5k, CDN companies, 3 week turn around
NSERC ARD - Applied R&D Grants – 1 - Create a new R&D partnership with a college. NSERC funds project costs up to $25,000 for six months. NSERC decision within six weeks
NSERC IRC - http://www.nsercpartnerships.ca/FundingPrograms-ProgrammeDeSubventions/IRC-PCI-eng.asp
NSERC I-USRA –
NSERC CRD –
NSERC IPS –
MITACS - Accelerate
ACOA BDP –
ACOA AIF –
SDTC – Sustainable Development Technology Corporation -
TDP – Technology Demonstration Program -
BCIP – Build Canada Innovation Program -