Financing Solutions for Startups: Part 1 – The Personal Route
Financing Solutions for Startups: Part 2 – Get a Loan
Financing Solutions for Startups: Part 3 – Federal Financing for Technology Businesses
Financing Solutions for Startups: Part 4 – Saskatchewan Agri-Business Tech Research & Development
Financing Solutions for Startups: Part 5 – For Indigenous Businesses
Financing Solutions for Startups: Part 6 – Grants
Financing Solutions for Startups: Part 7 – Angel Investors
Financing Solutions for Startups: Part 8 – Venture Capitalists
Financing Solutions for Startups: Part 9 – Capital Investors – Green Technologies, Biofuels, Energy & Biotech
This article is a great source for Capital Investor financing opportunities for your “green” technologies business.
In Part 7 and 8 we discussed the Angel Investors and Venture Capitalists. There is one category which is a mix of several financing sources, Capital Investors. How does capital investment work? An individual, venture capital group or financial institution may make a capital investment in a business. An amount of money is supplied either as a loan, as a promise of repayment or a share of future profits. This capital can then be used to further develop the company and market its products. There are several capital investors in Saskatchewan that are interested in supporting environmentally and naturally based technology solutions to help foster a green future for the planet.
Natural Products Canada
An innovation cluster dedicated to natural solutions based on the belief that the world is demanding naturally derived solutions for the health of people and the planet. Their group offers access to innovative natural products and technologies, interesting investment opportunities, and strategic business supports.
Natural Products Canada offers 3 main programs:
1. Fast-Track to Financing Program
Helps to create strong business or commercialization plans to attract public financing or private investment to help natural products, technologies or services get to market.
This Program is open to Canadian companies (SME’s (small/medium enterprises) or start-ups) and research institutes.
- For SMEs or start-ups:
The intent of the program is to develop strong business or commercialization plans that demonstrate the market and/or growth potential necessary to attract private capital or public funding.
- For Research Institutes:
The intent of the Program is to develop strong commercialization plans to attract public funding, secure industry partnerships, licensing opportunities, and/or create start-up companies.
- For SMEs or start-ups:
The Program supports the costs of engaging one or more expert(s), external consultant(s) or other service provider(s), to assist in strengthening or revising the business or commercialization plan.
Successful applicants will receive a conditionally repayable loan of up to 50% of the costs of the project, to a maximum of $25,000. The applicant is required to contribute at least 50% of the cost over the project period.
2. Executive Talent Program
Helps Canadian SMEs or start-ups within the natural product sector achieve key growth milestones through a new hire of a C-level or other senior-level executive within the company.
NPC will contribute up to $125,000 toward the cost of the new executive’s salary. The company must demonstrate the ability to finance salary costs that exceed $125,000. The NPC contribution will be in the form of a 50% non-repayable grant and 50% repayable loan. The financing can be used to hire the executive for part-time or full-time employment for a maximum of 12 months (project period¹). The Program is intended to permanently expand the expertise of the executive team to enable new growth opportunities.
3. Proof of Concept Program
Helps establish the commercial feasibility of innovative natural products and technologies in order to attract and de-risk subsequent investment.
The Program is open to Canadian research institutes, SMEs and start-up companies. Applicants can receive up to 50% of the cost of the proof of concept plan to a maximum of $250,000 during the project period (not to exceed 12 months). The applicant will be required to contribute 50% of the cost over the project period.
The Program does not support basic research or preliminary product/technology development. It supports animal, field, demonstration, or human trials that are intended to demonstrate the commercial potential of the product or technology.
For research institutes, the Program is intended to move a product or technology from intellectual property disclosure to near term spin-out and/or licensing opportunities. The NPC contribution will be in the form of a 50% non-repayable grant and a 50% conditionally repayable loan.
For companies, the Program is intended to demonstrate commercial feasibility of products and technologies. The NPC contribution will be in the form of a 50% non-repayable grant and a 50% repayable loan.
Cycle Capital Investment
Fueled by the participation of their strategic partners, Cycle Capital Investment direct venture capital investment to the best early or growth stage companies, supported by a seasoned team of financiers, engineers and operators working in collaboration with the best entrepreneurial teams to maximize returns on investment. Their “smart money” approach also leverages their vast network of contacts with industrial and business partners.
From agriculture technologies to green chemicals, including the new generation of biofuels, biomass transformation, smart grid, energy storage technologies, renewable energies, energy efficiency, big data and technologies dedicated to Smart Cities, they are working with companies that are rapidly and continuously changing the way we live and how we will be doing business in the years to come.
The Ag-West Bio Technology Commercialization Fund is designed to provide early stage capital to companies with promising technologies, where a clear pathway toward commercialization can be demonstrated.
Ag-West Bio can provide repayable investment capital and help secure matching funds for qualified early stage companies. Financing takes the form of flexible and patient risk capital and supports promising technologies at the early stages of development, when risk is too great for traditional capital sources. It ranges from $50,000 to $300,000 and is targeted to innovative initiatives that demonstrate exceptional long-term benefit to Saskatchewan and a clear pathway to commercialization. Investments are usually in the form of a loan, plus a royalty based on company revenue.
There you have it, part 9 in our series of financing solutions for your Saskatchewan Business. We hope that your If you are considering one of these sources make sure you have created a solid business plan to present, along with a well-rehearsed presentation to make them believe in your project.
Download this resource article Financing Solutions for Startups: Part 9 – Capital Investors – Green Technologies, Biofuels, Energy & Biotech (pdf).