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Overview

•  Introduction to FedDev Ontario

•  Investing in Business Innovation

•  Questions and Answers

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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

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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

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

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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

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 Initiative ($15M over 2 yrs)

•  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)

Southern Ontario

Advantage

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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

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Investing in Business Innovation •  Overview

•  Eligible Applicants – Start-up Businesses

•  Investor Requirement

•  Funding

•  Application Process

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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

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Investing in Business Innovation Eligible 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.

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Investing in Business Innovation Eligible 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.

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Example of an IBI applicant

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Investing in Business Innovation Investor 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.

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Investing in Business Innovation Investor Requirement (cont.):

•  Angel or venture capital investor must be prepared to submit a report to FedDev Ontario outlining their due diligence procedures and findings

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Investing in Business Innovation Funding 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

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Investing in Business Innovation •  IBI Project: Commercialization Activities that will move

innovative products, processes, or practices closer to market. Eligible Activities may include:

•  Marketing studies •  Certification •  Proof of concept •  Piloting and demonstration •  Problem solving •  Commercialization of

intellectual property (IP)

•  Product and process applied research

•  Engineering design •  Technology development •  Product testing

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Why apply to IBI

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Investing in Business Innovation Application 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.

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Investing in Business Innovation Application 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.

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What Can IBI funding do for you?

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Presenter: Laura Chan 519-571-6848 laura.chan@feddevontario.gc.ca

For more information about FedDev Ontario or our initiatives please visit

www.feddevontario.gc.ca or call us at 1-866-593-5505.