alternative financing presentation delivered to invest atlantic presentation in moncton, new...
TRANSCRIPT
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“ Accessing Alternative Financing”
Experience. Governance - Financial Management - Strategy
Integrity. Trust.
2
Real World
Gerard Buckley
[email protected]@jaguarcapital@gerardbuckleyBus: 416-645-6695
Experience and Expertise Founder & CEO of Jaguar Capital an Advisory Practice for
Growth Companies in Governance, Financial Management & Strategy
Past - Chairperson of Board of Directors, Maple Leaf Angels Corporation & founder and Lead Director for Maple Leaf Angels Capital Corporation, the General Partner of MLA48LP1 a Pre-Seed Angel Fund.
Certified Corporate Director - The Institute of Corporate Directors and Certified Management Consultant – Canadian Association of Management Consultants
Past member of Small & Medium Enterprise Committee of The Ontario Securities Commission
Investment Committee of Mount Saint Vincent University, Halifax, NS
32 yr. Career with Scotia Capital as a Financial Risk Management Advisor to Fortune 200 Companies: Rogers, Irving Group, Empire Co., Four Seasons, Bruce Power, OPG, Province of Ontario, Ford etc.
Starting a Company in the Modern Age
Personal Financing aka: Bootstrapping
Business Loans
SR&ED
Government Grants
Accelerators
Crowdfunding – Donations or product purchase
Crowdfunding – Equity
Friends, Family & Business Associates
Angel Investors - Accredited Investors
Offering Memorandum
Asset Backed or Receivables Lending
Venture Capital
Bank Debt
Financing Alternatives
Inventory, Receivable and Purchase Order Financing – Working Capital
Working Capital Advance – Based on Expected Future Sales – 125% of Ave MRR
Acquisition Financing
Technology or IP Secured
Debt Financing in form of Term Loan tied to Revenue Stream – 4x to 6x MRR
Trade Finance Lending – Letter of Credit or Letter of Guarantee
ABL – Asset Based Lending
Mezzanine and Sub-Debt
Royalty Lending – Revenue Based Financing – weekly or monthly payment
Loans Venture Loans – based on sales (warrants, less dilutive & payments based on sales)
Angel Investment, Venture Capital and Private Equity
Convertible Debenture, Common or Preferred Equity
Common Methods of Alternative Financing
Jaguar Capital and (FC) Financing Company co-arranged a financing facility for Marathon Fluid Systems to acquire a vertical integrated business based in NB.
The CEO has a vision to expand specialized manufacturing capacity in New Brunswick where he and his companies can add value
Market south of the New Brunswick boarder 100 million people Marathon understood at acquisition this business to be accretive Company had spent the summer of 2015 trying to arrange financing With guidance the company put together an excellent due diligence package as
the CEO, an experienced CEO was also a MBA and CPA Results – successfully arranged debt financing
Financial Management Case Study
Financing Alternatives
Stage Alternatives ExamplesEarly Stage - Personal Resources
- Family and Friends- Government Programs - Crowd funding
- Bootstrapping- Love Money- IAF, IRAP, OETF, OCE, IBI, SRED- Kickstarter- Indiegogo
Mid Stage- Angel Groups- Incubators & Accelerators - Super Angels- Micro- VC’s
- Maple Leaf Angels, Investor’s Circle, Keiretsu Forum
- Y Combinator, TechStars, MaRS- Ron Conway- Next View Ventures, Susa Ventures
Growth Stage- Venture Capital Funds- Mezzanine Financing- Asset backed lending- Banks
- OMERS Ventures, Andreesson Horowitz, Sequoia Capital
- BDC, Canadian Banks, Intermediate Capital Group
• Currently Southern Ontario Angel Investment community has 13 Angel groups, 33 in Canada
• Government programs ( IAF, MaRS, OCE, IBI)
• Online - Angel List, Syndicates, Funders Club, The Funded, Gust
• Y Combinator, Tech Stars, 500 Start-ups, +110 Accelerators in Canada …. Consolidation occurring to access gov’t funding
• Incubators & Accelerator funds
• Crowd funding such as kickstarter.com and equity crowd funding as well
• Introduction of OM - Offering Memorandum will have an impact
• Super Angels
• Micro-VC’s such IGan, Brightspark, Plaza Ventures etc.
• “Future of Venture” – unbundling of advice, money and control
Traditional Angel Network is Changing
Profit Magazine's Hot 50
Nation of independent contractors
The state of employment is changing dramatically
Canada is an Immigrant Nation
Productivity in Canada has not improved
USA advantage is the development of their risk Capital Markets
Seed and Pre-seed level is where VC money is going
Consolidation of Accelerators and Incubators
Angel Tax Credit provincially and is being lobbied federally
Valuations for public companies are high and is effecting private markets
Less exits
Canadian SME Financing Market Trends
MissionTo be a Trusted Advisor and Visible Expert to Companies for our Core
Competencies
CultureExperience
IntegrityTrust
VisionTo Grow a Canadian Based
Internationally Comprehensive Advisory Practise Focused on
Growth Companies
Who is Jaguar Capital
Target CompaniesGrowth Companies Where our
Consultants Add Value
Focused IndustriesEnergy, Digital Media
Technology, Healthcare Manufacturing
Financial Services
Specialize In Forming Advisory Boards
Board of Director ConsultationRaising Alternative Financing
Pre-Revenue Valuation
Focus OnGovernance
Financial Management Strategy
What Jaguar Capital Does
How We Do ItAdvisory
Management ConsultingInterim Executive
1. We HELP Companies get Financed
2. We HELP Companies Increase Investors Confidence in their Investment
3. We HELP Companies Grow
4. We HELP Companies with Strategic Direction
5. We HELP Companies Manage Financial Risk
6. We Get a Company Positioned for IPO
7. We HELP Companies with Dysfunctional Boards of Directors, Advisors &
Disruptive Directors
Benefits of Working with Jaguar Capital
Advise on financing alternatives for growth stage companies Advise on the negotiation of financing, loan and banking agreements Consult with and Advise companies preparing for their next round of
professional financing Prepare the company for the investor due diligence process Advise companies on the management and mitigation of their foreign exchange
exposures Measurement of Financing needs and business’ health Assist pre-commercialized prepare a company valuation Advise on the company’s Cash Management needs
Financial Management
“1/3 of all SME’s in Canada had problems accessing additional financing, let Jaguar Capital help you attain the financing you deserve”
– Gerard Buckley