FUNDING YOUR BUSINESS 101

TECH VANCOUVER FUNDING YOUR BUSINESS 101

FUNDING YOUR BUSINESS 101

FUNDING YOUR BUSINESS 101

Stage: You’ve got an idea and need money!• Who can you get money from?

– A family member – A close personal friend or close business associate

• Remember, nobody wants to invest in your company if you don’t have skin in the game

FRIENDS & FAMILY

FUNDING YOUR BUSINESS 101

ANGEL (ACCREDITED) INVESTORS

• Stage: I’ve built a product, I think people will like it but I need money to find out!

• An accredited investor includes:– Financial institutions– Registered advisers or dealers– Pension funds– Mutual funds selling only under a prospectus or to accredited investors or persons buying at

least $150,000 of securities – Corporations, limited partnerships, trusts or estates having net assets of at least $5 million– Have at least $1 million in financial assets before taxes. – Net income before taxes exceeds $200,000– Have at least $5 million in net assets

FUNDING YOUR BUSINESS 101

SERIES A - VCAll the money you could need! 30%+ of your company!

Board seatsDilutionDistraction

FUNDING YOUR BUSINESS 101

SERIES A – VC - TIPS• Don’t give up the farm• Be patient, don’t take the first deal• Interview your VC’s don’t sell

– You’re looking for a partner not a sugar daddy

FUNDING YOUR BUSINESS 101

EQUITY CROWDFUNDING

FUNDING YOUR BUSINESS 101

EQUITY CROWDFUNDING• How to:

– Accredited Investors– Offering Memorandum

• Allows an issuer to sell its securities to anyone, regardless of their relationship, wealth or the amount of securities purchased.

– Crowdfunding Exemption• The maximum an issuer group can raise is $250,000, up to two

times per year. The maximum each purchaser can invest in a project is $1,500.

FUNDING YOUR BUSINESS 101

EQUITY CROWDFUNDING TIPS

• It’s not easy!• It’s not for everyone• Keep it simple• Marketing is key• ABC

FUNDING YOUR BUSINESS 101

EQUITY CROWDFUNDING V. VC’s