This document outlines the typical stages of company development from early stage to exit, including activities, funding stages, and purposes at each stage. It provides an overview of the Discovery stage where founders form a team, validate a problem and solution, create a minimum viable product, and seek early financing. The Validation stage focuses on refining the product, achieving early user growth and funding, while the Efficiency stage optimizes business models and customer acquisition processes. Later stages aim to drive growth aggressively through scaling revenues.

1. Early Stage Funding February 27th, 2013
Marc Castel
marc.castel@communitech.ca

2. Company Development Stages
Months 7 11 17 25
INTAKE
EXIT
Discovery
Bright Ideas Validation
3 Beta Efficiency
Commercial Scale
Revenues
Customers Demo

3. Purpose
Months 7 11 17 25
validating solving a early validation that people are refine business model and improve drive growth very aggressively.
Purpose
meaningful problem and interested in product and willing to efficiency of customer acquisition
whether anybody would pay process.
hypothetically be interested
in solution.
INTAKE
EXIT
Discovery
Bright Ideas Validation
3 Beta Efficiency
Commercial Scale
Revenues
Customers Demo

4. Activities
Months 7 11 17 25
validating solving a early validation that people are refine business model and improve drive growth very aggressively.
Purpose
meaningful problem and interested in product and willing to efficiency of customer acquisition
whether anybody would pay process.
hypothetically be interested
in solution.
INTAKE
EXIT
Discovery
Bright Ideas Validation
3 Beta Efficiency
Commercial Scale
Revenues
Customers Demo
•Founding team is formed, •Refinement of core features, •Value proposition refined, •Large A Round,
•many customer interviews •initial user growth, metrics and •user experienced overhauled, •massive customer acquisition,
are conducted, analytics implementation, •conversion funnel optimized, •back-end scalability
•value proposition is found, •seed funding, •viral growth achieved, improvements,
•minimally viable products •first key hires, •repeatable sales process and/or •first executive hires,
Activities
are created, •pivots (if necessary), scalable customer acquisition •process implementation,
• team joins an accelerator or •first paying customers, channels found. •establishment of departments.
incubator, •product market fit.
•Friends and Family financing
round,
• first mentors & advisors
come on board.

5. Funding Stages
Months 7 11 17 25
Founders: $150k Seed: $600k Angel: $900k Series “A”: $3,000k
 
INTAKE
EXIT
Discovery
Bright Ideas Validation
3 Beta Efficiency
Commercial Scale
Revenues
Customers Demo
Gov Angels Angels Venture
Founders Government Government Corporate
Family & Friends Debt

6. Company Development Stages
Months 7 11 17 25
Name Source Terms $Amt Note
$150k
Summer Company Government Grant 3k .ontariocanada.com/ontcan/
Discovery 1medt/smallbiz/en/sb_ye_s
ummerco_en.jsp
OCE (college-university) Government Grant 150K oce-
ontario.org/programs/comm
ercialization-
programs/market-readiness
JumpStart Government Grant 25k Need matching $ and
mentor. Run through AC
Others LaunchPad Angel Investment 10-50K Competition
CYBF Government Loan 15k Requires 2 yr mentoring
cybf.ca
BDC Institutional Loan 30k Run through CYBF
Hyperdrive Communitech Inv+Loan 40k hyperdrive.communitech.ca
Jolt MaRS Investment 30k jolt.marsdd.com
Extreme Start-ups Angel Investment 18k extremestartups.com
Velocity Philanthropy Grant 25k Competiton
velocity.uwaterloo.ca
KickStarter Crowd Funding Pre-Sale variable kickstarter.com

7. Canadian Hyperdrive Jolt GrowLab Extreme Startup Founder Fuel Velocity Accelerator Centre
(Communitech) (MaRS) (Wertz,Brody, (Varma, Sharma) (Ian Jeffrey) (Van Koughnett, (Ellis, Jackson)
Accelerators Landa, Bailey) Extreme Ventures Real Ventures Kirkup) (Incubator)
and Waterloo (University of
Incubators Waterloo
Incubator)
Location Waterloo Toronto Vancouver Toronto Montreal Waterloo Waterloo / Stratford
Type of Company Tech IT, Tech Tech Web & Mobile Tech, full-time Products that can be
Communications Internet Web & Mobile Waterloo Student commercialized
and entertainment (+ other Tech) within 2 years
(ICE) (Cdn
residents only)
Mentorship 8 EIRs & 50+ Industry 80 Mentors + 25+ Wkly mentorship: 85 entrepreneurs, 6 mentors and 6 In-house advisors
Experts & Service sponsor support Founders 1on1, technology, funding, executives, VC, access to (technology, sales,
providers, Mentors legal, PR, marketing angels Communitech VSG finances, and
Wkly mentorship: & human resources of 8EIRs marketing). Access
technology, funding, to 8 Communitech
legal, PR, marketing VSG EIRs
HR
Funding Up to $200K $30K 6-7% Up to $25K 5-10% $18K 6% $10K + $5K/founder $25k Grant -
$40K 7% +sponsor perks Possible $150K BDC up to $25k 6%
+sponsor perks
Networking Excellent Excellent Good Good Good Excellent Excellent
Time 3months 4 months 4 months 3 months 3 months Every term 24 months
Intakes/x yr 10 / 3x 6-10/ 2x 5-7 Fall 3 / Summers TBD Continuous Intake
Program Intensive 1on1s, Presentations, Wkly spealers, Grow Wkly mentorship, lasses, guest Events, workshops, Events, Networking,
(all involve U-Build workshops, events, Events, Workshops Conf (fall) wkly product demo speakers, feedback Demo day presentations,
your Capital collision, trips, Demo day w/ Extreme Labs sessions w/mentors, workshops, advisory
company/product Demo day Showcase Day demo day services, mentoring
during prg)
Incubation 65,000 / 20,000 sq.ft. 5,500 sq.ft. 3 mos Vancouver Toronto at Extreme Notman House Communitech Accelerator Centre
HUB/AC KW MaRS Commons 1 mo SanFrancisco Venture Partners Montreal Garage private and shared
NYC / Silicon Valley space
Competitive Extremely hands on, Local MaRS TBD - New Several exits TBD-New Excellent early-stage Goal orient program
Advantage available 24/7, support, well (2 prior years active) discovery and with accountability
full service and networked validation program
comprehensive prg

8. Comparative Hyperdrive Tech Stars Y Combinator 500 Startups
(Communitech) (David Cohen) (Paul Graham) (Dave McClure)
USA
Accelerators:
Location Waterloo Boulder, Boston, Silicon Valley Silicon Valley
NYC, Seatle
Type of Company Tech Tech Tech Tech
Web and Financial services,
Software search/social/mobile
platforms,
productivity, education
& language, family &
healthcare, web
infrastructure
Mentorship 8 EIRs & 50+ Industry 400 Once/wk/20min 140
Experts & Service Panels, coaching or on demand EIRs, Speakers &
providers, & presentations Mentors
Wkly mentorship:
technology, funding,
legal, PR, marketing
HR
Funding Up to $200K $6K/founder up $20K 7%+ $10-100K
$40K 7% to $18K 6% $100K YM+$50K RC
+sponsor perks debt no cap no disc
Networking Excellent Excellent Awesome Excellent
(Business, VC,
Angel)
Time 3months 3 months 3 months On-going
Intakes/x yr 10 / 3x 10-12 / 4x 40-60 / 2x 25/3x
Program Intensive 1on1s, Wkly dinner w/ Wkly dinner w/guest High Touch
(all involve U-Build workshops, events, presentations, speaker, prototype Demo Day
your Capital collision, Demo day day, demo day, meet
company/product trips, Demo day Sequoia day, Events
during prg)
Incubation 65,000 / 20,000 sq.ft. 10,000 sq.ft None 10,000 sq.ft
HUB/AC KW Boulder (in community) Mountain View
NYC / Silicon Valley
Competitive Extremely hands on, Standardized PG Always on, Vested, well branded

9. Company Development Stages
Months 7 11 17 25
Name Source Terms $Amt Note
$600k
Golden Triangle Angel Equity 300k Sept-June
Validation AngelNet goldentriangleangelnet.ca
Communitech Fund LP Equity/Loan 75k Technology companies
communitech.ca
Angel One Angel Equity 200k angelonenetwork.ca
Investor Network
York Angel Angel Equity 200k yorkangels.com
Investors
Others
Georgian Angel Network Angel Equity 150k georgianangelnet.ca
Niagara Angel Network Angel Equity 100k niagaraventureforum.com
S.W. Ontario Angel Network Angel Equity 100k swoangel.com
FedDev IBI Government Loan 0% 999k 1:2 match for “projects”
backed by Angel or CVCA
Fed Dev SOFII Government Loan 8% 250k+ Loan to scale to min of 50
employees
Rogue Angels & Clubs Private Various 50k+ High net worth individuals
Pitch Competitions Various Various 1-50k Laurier Entrepreneurship,
TieQuest, etc.
Angel List Angel Investment - angel.co

10. Company Development Stages
Months 7 11 17 25
Name Source Terms $Amt Note
$900k
Angel Syndicates Angel Equity 1,000k+ For larger deals 500k-1.5m
Efficiency
MaRS IAF Institutional Conv. debt 500k Ontario emerging
Technology companies
Golden Ventures Private Venture Equity -500k Mobile
Partners
IRAP Government Grant 10-250k For various projects, new
hires, IP filing, R&D
Others Rho Ventures Private Equity Equity 50k Energy, Health, IT,
Communications, Media
Extreme Venture VC Lite Equity 150k Tech. Provide additional
Partners management expertise
BDC Sub-Debt Government Sub-Debt 250+ Need $1m annual revenue
Expresso Capital SR&ED Factoring Debt Finance SR&ED &MRR
Mantella Venture Partners VC Equity Up to Mobile and internet.
500k Hands on managment
MaRS BAP Government Grant 20k Embedded Executives and
projects
OCE Market Government Grant/Equity 190k Commercialization
Readiness projects for academia
Corporate VC Funds Corporations Various 400k+ Specific shopping lists of
technology

11. Company Development Stages
Months 7 11 17 25
Name Source Terms $Amt Note
$3,000k
OMERS Ventures Institutional Equity 500++ Lifecycle funder
Scale omersventures.com
iNovia Capital VC Equity 500++ Technology Companies
syndicated “A” rounds
Klass Capital LP Equity 2,000+ High Growth SaaS
klasscapital.com
BDC Venture Capital VC Equity 1,000+ www.bdc.ca
Others Round 13 Capital LP Equity TBD round13capital.com
Plaza Corp LP Equity 500+ Technology Companies
plazaventures.ca
Best Funds LP V. Debt 1000+ Short-term venture debt for
tech cos. bestfunds.ca
Comerica Investment Bnk V. Debt 1000+ comerica.com
Summerhill Venture LP Equity TBD Wireless, digital media, ITC
Partners summerhillvp.com
Georgian Partners VC Equity 5000+ SaaS Syndicated “B” rounds
georgianpartners.com
Tandum Capital VC Equity 5000+ Tech. Mostly “B” rounds
tandemexpansion.com
Various Corporations Corporations Acquisition TBD Mostly talent and/or
technology acquisition

12. Real Tech Example
2007 Dec 2010 Feb 2011 Dec 2011 2013 2014
INTAKE
EXIT
Discovery Validation Efficiency Scale
Founders$ Family & Angels Angels Angels/VC
120k Friends$50k $700k $330k $500k
Institutional IAF Series A
$500k $2-5m
Fed Dev IBI
$740k
Gvmt Grants Gvmt Grants
$136k $223k
SR&ED SR&ED SR&ED SR&ED SR&ED
$9k $21 $49K $210K $300K