In this event attendees will gain insight into how to position their efforts and business model to be aligned with the best Capital pool. They will also receive tips on where to go and how to access Capital successfully.

1. Raising Capital

2. Agenda Background Define Capital New Venture Cycle Stages in Cycle Cash Flow Forecast Business Opportunity Capital Ladder Puzzle Top 10 traps to avoid

3. 1) Background Finance / Capital Markets Intrapreneur 25 Years B.S. Finance / MBA Rotman Argentari Group Buy Side advisor opportunity assessment Manage investment early stage ventures Independent financial valuations Angel Investor Chairperson Ryerson Angel Network NOT SELLING OR BUYING

4. 2) What is Capital?

5. What is Capital FUNCTIONAL DEFINITION The Value of ContractualFinancial and Human Assets Invested by the Founder(s) and Others in a business.

6. Capital Assets Financial Human PAYMENT VALUATION

7. Assets Financial PAYMENT Cash Hard Assets VALUATION External Market

8. Capital Assets Financial Human PAYMENT Expertise Cash Hard Assets Idea VALUATION External Market Internal Assessment

10. My Uncle Jim let me use his basement he usually rents for $2,000 a year for free.

11. I have an equal partner who I work with.

12. I promised to compensate Joe, a programmer who wrote the software. It usually costs $10,000.

13. I have a grant from the government for $8,000.

14. Sally contributed a tractor a worth $23,000 that we use in the business.

16. Capital Investing Equity Capital Business Plan EQUITY Profit Profit 0 Time EQUITY

17. Equity Value as seen by Founder Capital Business Plan Profit 0 Time

18. Equity Value as seen by Others Business Plan Capital Profit 0 Time

19. What is Capital FUNCTIONAL DEFINITION The Value of ContractualFinancial and Human Assets Invested by the Founder(s) and Others in a business.

20. 3i) New Venture Business Cycle Tried to copy a Graph

21. Page 16

22. Page 17

23. Page 18

24. Page 19

25. Page 20

26. 3i) Stages Stage 1: Mind to Money The first Aha moment Research Business Plan The Real Aha Moment Real Business Plan In Depth Research Detailed Plan / Budget

27. 3i) Business Cycle Stage2: Proof of Concept Detailed Budget Prototype Specs Prototype Built External Hurdles Overcome Start of First Cycle One Cycle Completed

28. 3i) Business Cycle Stage3: Sell, Adapt Detailed Marketing Plan Sales Tracking CMO Stumble Fall Get up

29. 3i) Business Cycle Stage 4: Sell, Profit, EXIT CFO Cost control Leadership Business acumen Management ability Shareholder relations

30. 3ii) Cash Flow Stage 1: Mind to Money Stage2: Proof of Concept Stage3: Sell, Adapt Stage 4: Profit, EXIT CASH FLOW

31. 3ii) Cash Flow Stage 1: Mind to Money Stage2: Proof of Concept Stage3: Sell, Adapt Stage 4: Profit, EXIT CASH FLOW

32. 3ii) Cash Flow Stage 1: Mind to Money Stage2: Proof of Concept Stage3: Sell, Adapt Stage 4: Profit, EXIT CASH FLOW

33. 3iii) Classify Opportunity Also ran New and Improved Marriage Play Medium Change Industry Transplant Category / Segment Killer Technology leap Model Disruption R&D, Proof of Concept, Sales

34. 4) Capital Ladder

35. 4) Capital Ladder

36. Raising External Capital boils down to THE ASK

37. 3ii) Cost of Capital VENTURE RISK Stage 1: Mind to Money Stage2: Proof of Concept Stage3: Sell, Adapt Stage 4: Profit, EXIT CASH FLOW Hi Cost Capital Lo Cost Capital

38. 3ii) Cost of Capital VENTURE RISK Stage 1: Mind to Money Stage2: Proof of Concept Stage3: Sell, Adapt Stage 4: Profit, EXIT CASH FLOW Hi Cost Capital Lo Cost Capital

39. Capital Puzzle Grants V.C. I.P.O. Angels 3 F’s

40. Investor Segments N / A

42. Support

43. Validation

44. Idea Generation

45. True Value:

46. First Round Real Money

47. NEGATIVE NET RETURN

48. Segment Breakdown:

49. Comfort: 35%

50. Cynics: 55%

51. Cash: 5%

53. Silent Partners

54. Financial s of F = your risk

56. Free Money

57. Validation of Business

58. Public Credibility

59. True Value:

60. Program Funded

61. Best kind of Capital

62. Segment Breakdown:

63. Ineligible: 85%

64. Resources: 10%

66. Time is not a factor

67. Avoid Agents / Never pay for the service

68. Read fine print

69. Holder of I.P.

70. Equity Stake

71. Debt

72. SR& ED, IRAP, MaRS, EDC, = Grant

74. Like Equity

75. Leverage

76. Doesn’t Effect Equity

77. True Value:

78. NOT EQUITY

79. Great place for 3 F’s

80. Drains Cashflow / Equity

81. Shareholders Prefer

82. Segment Breakdown:

83. Personal Gty: 95%

84. Collateral: 4.8%

86. Personal Guarantee usually required

87. Partners joint and severed

88. Collateral haircut required on all Assets

89. Signing for a loan is a loan

90. Lenders want to be all equal

91. Commitment for life

92. Vendor financing = Payment Terms

93. Community based loans are available

94. Schedule A’s not interested

96. Quasi Equity Investment

97. Chosen Few

98. Quick step to Cash

99. True Value:

100. Group Environment

101. Mentorship / Reputation

102. Facilities / Rolodex

103. Segment Breakdown:

104. Real: ?%

105. Bogus: ?%

106. Advisory Boards ?%

107. Landlords ?%

109. Facilities have market value (REGUS)

110. Number of successes

111. Industry Expertise (Tech)

112. Agent for Capital

113. People are the asset

114. # of ventures per cycle

115. Credibility / Term

116. Conversion Terms / Timing / CostOnly Cash is as good as Cash

118. Real Equity Investors

119. Unlimited Cash

120. War Hero’s

121. True Value:

122. Financial Oversight

123. Real World Mentorship

124. Operating Cash

125. Primer: Investor Relations

126. Segment Breakdown:

127. Cynics: 30%

128. Critics: 40%

129. Consualtants:20%

131. Due Diligence / Legal Agreement

132. Number of groups / organisations

133. Idea + Business Acumen+ Showman

134. Jockeys not horses (execute fair idea)

135. Plenty of ponies

136. Know your #’s

137. Max 15 % of individual portfolio

138. High Risk Return and Involvement

139. Exit Key with limited dilution

140. Limited Funding Capability (80’s dead)VALUATION

142. Big Time Equity

143. Source all future capital

144. Advisors

145. True Value:

146. Validation

147. Capital

148. Driver to an Exit

149. Segment Breakdown:

150. Small : $250 - $2Mil

151. Medium: $ 2 - $5

153. Detailed Due Diligence

154. Extensive Legal Agreement

155. Source of Capital / Return Criteria

156. Many Industry Specific

157. Canada = California

158. Last sector to recover

159. # of investments

161. Discounted Cash Flow

162. Risk Premium 50%

163. Comparatives

164. U.S. Vs Canada

165. Other Investors

166. Real Money

167. Credibility of Lead

168. Valuation Agents

169. Questionable Value

170. External Factors

171. Speed

172. Terms

173. Value founder time/money/effort

174. Expected return

175. Operating vs. financial control

176. Assets

177. Salaries

178. CollateralStage 1: Stage2: Stage3: Stage 4: Cash Flow Value

179. Investor Segments EXIT The one with the gold, makes all the rules Golden Rule:

181. Want to keep 80% equity

189. Top TEN Traps to Avoid Unrealistic Valuation Overstate Market Potential Assume a Linear Progression Allocate Equity too soon Hold on to Equity too long Misunderstand the role of Capital No serious skin in the game Discount Bootstrapping Miss Grant / SRED / forgivable loan opportunities Gain all education through Experience vs. Academics