Investing in Business Innovation (IBI) - Innvation Information Forum


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Investing in Business Innovation (IBI) - Innvation Information Forum

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  2. 2. Overview•  Introduction to FedDev Ontario•  Investing in Business Innovation•  Questions and Answers
  3. 3. Background•  Federal Economic Development Agency for Southern Ontario (FedDev Ontario) launched by the Prime Minister - August 13, 2009•  Created in response to southern Ontario’s economic challenges - tailored to the region’s unique needs and priorities•  Supporting southern Ontario’s economic recovery through job creation, growth, and innovation 4
  4. 4. The Agency•  Head Office in Kitchener•  Regional offices in Stratford, Peterborough, Toronto and Ottawa to serve the diverse needs of southern Ontario•  Over 200 staff delivering on our mandate 5
  5. 5. Creating a Southern Ontario Advantage FedDev Ontario is working with southern Ontarians to: •  Promote economic growth and job creation •  Foster innovation •  Enhance productivity and competitiveness •  Support regional diversification •  Position southern Ontario as a strong force on the global stage
  6. 6. Achieving a Southern Ontario Advantage•  Encouraging youth to enter Science, Technology, Engineering, Mathematics (STEM) fields•  Encouraging the next generation of innovators and entrepreneurs•  Supporting increased access to capital for higher-risk endeavours•  Supporting communities to be prosperous and to diversify•  Cultivating and commercializing game- changing innovation 7
  7. 7. FedDev Ontario Initiatives People Advantage •  Youth STEM (up to $20M) •  Graduate Enterprise Internship (up to $80M) •  Scientists and Engineers in Business (up to $50M) Knowledge Advantage •  Applied Research and Commercialization Southern Ontario Initiative ($15M over 2 yrs) Advantage •  Technology Development Program (up to $75M) Entrepreneurial Advantage •  Investing in Business Innovation (up to $190M) Prosperity Advantage •  Prosperity Initiative - Productivity, Diversification and Competitiveness (up to $210M) 8
  8. 8. Entrepreneurial Advantage•  Help innovative start-up companies leverage angel and venture capital investments to accelerate commercialization•  Support angel networks to attract new investment•  Programs: Investing in Business Innovation 9
  9. 9. Investing in Business Innovation•  Overview•  Eligible Applicants – Start-up Businesses•  Investor Requirement•  Funding•  Application Process 10
  10. 10. Investing in Business Innovation•  Up to $190 million through March 2014•  Help start-up businesses bring new products, processes and practices to market faster by leveraging private sector investment to carry out eligible commercialization activities•  Support angel investor networks and associations in their outreach and promotion activities to attract investment 11
  11. 11. Investing in Business InnovationEligible Applicants - Start-up SMEs:•  Registered businesses planning to undertake commercialization activities in southern Ontario•  Have less than 50 employees•  Must have a signed draft term sheet from a recognized angel or venture capital investor, conditional on Investing in Business Innovation funding, as proof of a funding commitment. 12
  12. 12. Investing in Business InnovationEligible Applicants - Start-up SMEs (cont.):•  Must be utilizing mentoring, counseling, and other business services from an angel investor or venture captial partner.•  Priority may be given to start-up SMEs that have already received one round of funding from an eligible angel or venture capital investor. 13
  13. 13. Example of an IBI applicant 14
  14. 14. Investing in Business InnovationInvestor Requirement:•  Angel Investor - defined as an investor that meets the Ontario Securities Commission definition of an accredited investor. The angel investor must also be a member of an angel investor network in southern Ontario registered with the National Angel Organization.•  Venture Capital Investor - must be registered with the Canadian Venture Capital Association, and planning to undertake investment activities with a southern Ontario start-up SME. 15
  15. 15. Investing in Business InnovationInvestor Requirement (cont.):•  Angel or venture capital investor must be prepared to submit a report to FedDev Ontario outlining their due diligence procedures and findings 16
  16. 16. Investing in Business InnovationFunding for IBI Project•  At least 2/3 of Eligible and Supported Project Costs to be contribution in Cash by investors•  Up to 1/3 of Eligible and Supported Project Costs to be funded by FedDev Ontario – to a maximum of $1M•  FedDev Funding disbursed on a reimbursement basis•  FedDev Funding is Repayable 17
  17. 17. Investing in Business Innovation•  IBI Project: Commercialization Activities that will move innovative products, processes, or practices closer to market. Eligible Activities may include: •  Product and process •  Marketing studies applied research •  Certification •  Engineering design •  Proof of concept •  Technology development •  Piloting and demonstration •  Product testing •  Problem solving •  Commercialization of intellectual property (IP) 18
  18. 18. Why apply to IBI 19
  19. 19. Investing in Business InnovationApplication Process•  Review IBI Program Guidelines and connect with the IBI Program Manager or an IBI Project Officer to discuss your project•  Application to be submitted with draft term sheet prior to the closing of the investors funding.•  Full application package with supporting documents must be submitted within 2 weeks. 20
  20. 20. Investing in Business InnovationApplication Process (cont.)•  Applications are assessed on a first-come first serve basis when they are complete.•  We are not able to provide estimates of the duration of the assessment process. 21
  21. 21. What Can IBI funding do for you? 22
  22. 22. Presenter: Laura Chan 519-571-6848 laura.chan@feddevontario.gc.caFor more information about FedDevOntario or our initiatives please visit or call us at 1-866-593-5505. 23