1. http://www.flickr.com/photos/8158447@N08/sets/7215
7634249291233/

2. WELCOME
Mike Vanderlee
Meetup #16
Facilitator
Silicon Peel
‘Lean Ventures & Alternative Funding’

3. • Welcome
• Silicon Peel Programs
• Lean Ventures & Alternative Funding
• Steven Cox (Strategic Innovation Works)
• Ken Mair (JPM Capital)
• Richard Kun (RDP Associates)
• Speaker Q&A
• Break
• Demo Me: DUBGEAR
– Jansen White (Founder, DUBGEAR)
• Internship Programs
– Bjoern Froehlecke (Visiting Faculty, George
Brown College)
• Startup Success Funnel
– Steven Cox
• Closing Remarks & Networking
Agenda

4. www.SiliconPeel.co
LinkedIN/SiliconPee
@SiliconPeel

5. www.SiliconPeel.com

6. Want to Join Our Team?
Contact Jason Lavigne!
Jason@SiliconPeel.com

7. The Starting Lineup…
Steven Cox
Founder & Managing Director
Strategic Innovation Works
Ken Mair
Partner
JPM Capital Inc.
Richard Kun
Business Development Manager
RDP Associates

8. Lean Ventures
“Do What Really Matters”
Steven Cox
Managing Director
Strategic Innovation Works

9. Get the book

10. Summary
Do not assume you know what your
customers want.
Use the Build-Measure-Learn cycle to create
features and products people really want.
Use small batches to scale the startup, being
clear about growth drivers.

11. Origins of Lean Startup
Inspired by Lean Manufacturing practices.
– Minimize waste
– Maximize flow
Lean Startup: a set of methods focused on
creating a successful startup.
How are they different?
– Lean: suited to repetitive processes
– Lean Startup: methods which factor the high level of
unknowns present in startups

12. Do not assume you know what your
customers want!
Use the Build-Measure-Learn feedback loop to
navigate toward a winning product.
Pivot or persevere along the current path?
– Use meaningful customer feedback to decide.

13. Build-Measure-Learn
Build a minimum viable product (MVP) and
put in front of customers.
Build as quickly as possible to Learn whether
customers are willing at all to pay for the
product (Measure).
Repeat to refine your product.

14. Use small batches
A small batch for a startup = one full Build-
Measure-Learn cycle.
B-M-L cycle should be as short as possible.
Build new features, split-test and further
develop if customer reaction is good.

15. Metrics
Measure Customer reaction with Action Metrics.
 Measure actions that you want customers to take
Opposite of Action metrics is "Vanity metrics"
 e.g. Total number of users or accounts.
Using Vanity metrics is an excellent way to deceive
yourself and others!

16. Customers
We must learn what customers really want.
 Not what they say they want
 Or, what we think they should want
Customers often don't know what they want.
Let them try an MVP and measure their reaction.
Conduct an experiment, offer customers something
new, then measuring their behavior

17. Early Adopters and Mainstream
Two key types of customers.
– Early Adopters
• Like MVP’s.
• Tolerant of faults and errors
– Mainstream
• Much more demanding
• Need proof
Mainstream is where the money is!

18. Early Adopters and Mainstream
The transition to mainstream customers
requires tremendous additional work.

19. Assumptions
Treat a new product launch like a series of experiments.
– Question before building: ”Should this product be built?”
– Identify assumptions and figure out ways to test them
Two most important assumptions.
– Value hypothesis: Does a product really deliver value to
customers? A good indicator is repeat usage
– Growth hypothesis: How will new customers discover the
product?
Validate assumptions as early and as quickly as possible

20. Takeaway
Un-validated assumptions are dangerous.
Lean Startup methods help to:
Find a product that people actually want to use
and pay for
Build a sustainable business once you have found
the right product
The book is good, but you’ll need others too.

21. Alternative Funding
Ken Mair
June 26, 2014

22. Ken Mair - Background
• Senior Sales and Marketing Executive
• Expert in tactical planning
• Helped a wide range of companies raise over $500M
• Spent the past 13 years as an independent consultant working with
SME’s
• Services provided include;
• Tactical plan development
• Sales forecasting training
• Creating and developing Investor Plans
• Presenting to investors and funders at every level
• Currently President and Sole Owner of The 180 Perspective –
continuing to work with SME’s to build Tactical Plans and Investor
Presentations
• Through The 180 Perspective a partner in JPM Trade Capital Inc. (an
asset backed lender) and Awesome Online Ventures (an owner of
several Ecommerce properties)

23. Today’s Objective
• The three objectives;
1. Provide some insight on what investors and funders
look for in initial funding presentations.
2. Identify alternate sources of funding available to
emerging and growing companies.
3. Show real life examples of companies who have
successfully used alternative funding to grow their
business.

24. Answering The Ten Questions
1. What have you got?
2. Who is going to buy it?
3. Why?
4. Where are you?
5. How did you get there?
6. Where are you going?
7. How are you going to get there?
8. What do you need?
9. When do you need it?
10. What’s in it for me?

25. Other Sources of Money
• Equity funding is the most expensive way to finance your
business, particularly in the early stages.
• Alternate sources of funding protect your equity for future
funding rounds.
• Alternate sources for funding include but are not limited to;
 Receivables Factoring
 Purchase Order Financing
 SREDTax Credit Financing
 Bridge Loans
 Government Funding
 CrowdFunding

26. Accounts Receivable Factoring
Generally thought of as extremely expensive with a bad reputation
this is actually a very effective way to raise working capital.
 A Local Sign Company
• The Challenge – Difficult to bid on large jobs because of the working
capital required to purchase raw materials and pay for installation.
• The Solution – Establish a factoring line that they can use when they
win a big job. Offset the cost of factoring by including a cost of
financing in their pricing model.
• The Result – Recently won a 165K contract to redo the signs on the
Torstar building in downtown Toronto.

27. Purchase Order Financing
The ability to finance purchase orders in order to produce
finished goods and deliver on an order.
 Skincare Company
• The Challenge – Won a major order with a national retailer but didn’t
have the working capital to deliver the finished product.
• The Solution – Establish a PO Financing facility to allow them to build
and purchase products required to fulfill the order. Establish
receivables factoring facility to provide working capital to deliver on
the in store training and marketing requirements in the contract.
• The Result – Grew their business 1000 percent in 24 months and
retained 100% ownership.

28. SREDTax Credit Financing
Another form of receivables factoring based on money owed
by the government.
 Software Company
• The Challenge – Lacked the working capital to effectively launch
their finished product.
• The Solution – Company had never filed for SRED credits. Hired a
SRED consultant and filed an 800K claim. Factored the claim and
received a 480K advance.
• The Result – Successfully launched the product, exceeded revenue
targets and didn’t dilute the company.

29. Bridge Loans
Short term funding to re-align the funding for a company.
 Call Centre
• The Challenge – Required working capital to continue to
grow their business. Bank held security on their receivable
but only offered 50% coverage of 60 days receivables.
• The Solution – 60 day bridge loan to allow the company to
switch banks. Company secured a 200K line of credit from
new bank without receivables security and a 90% 90 days
receivables line from an outside source.
• The Result – Grew business 75% in 12 months.

30. Government Funding
Government funding takes a long time and is very much hit and
miss. However a hit can be very lucrative and if you are in an
industry that can create jobs you will get some interest.
 Government Grants
• Self Cooling Beer Can
• The Challenge – needed to redesign their can to meet environmental
requirements. Cost was prohibitive and VC funders wanted most of the
company to fund the research.
• The Solution – Ontario Government Research Grant to redesign the can at
no cost to the company
• The Result – Environmentally friendly can developed, Company is
negotiating launch with three major breweries.
 BDC
• Quickly developing traditional bank tendencies
• Creativity is Account Manager dependant
• Wide range of financing and business support options
• Worth building a relationship with

31. CrowdFunding
• Trendy Fundraising.
• With the right fit a great way to raise money without sacrificing
equity.
• There are specific rules for Canadian Companies.
• Must include the pre-sale of products.
• Successful fundings have a large social media content.
• Not as easy as it looks but with the right product and approach
there are some amazing success stories.

32. Conclusion
• Business funding is a forever exercise..
• Build a 20 minute presentation that impactfully addresses the 10
questions.
• Hold on to equity for as long as possible.
• Educate yourself on alternate sources of funding.
• Remember if you build the cost of funding into your pricing model
your customer is paying and the money is in effect free.
• In the end a couple of points of interest is still way cheaper and
way less intrusive than taking on equity partners.

33. Contact Information
Ken Mair
416-303-7186
Ken@jpmtradecapital.com

34. Leveraging Government
Funding To Grow Your
Business
Richard Kun
RDP Associates Inc.
rkun@rdpassociates.com
@richardkrdp

35. Agenda
Types, Sources and Mandates
Process to Navigate
Notable Programs

36. Various Forms
• Over 500 Incentive Programs
• Tax Credits: Refundable vs. non refundable
• Grants
• Matched Funding
• Repayable Contributions
• Forgivable loans

37. Various Sources
• Federal
• Provincial
• Municipal
• Chamber of Commerce
• Trade Associations

38. Various Mandates
• Specific time periods to apply.
• Targeted to Specific Sectors.
• Targeted to Different Size of Companies.
• Limited funding vs. Unlimited Funding.

39. What Government Funds
• Job Creation
• Training
• On new equipment and technology.
• Export Marketing
• Plans, personnel, feasibility studies.
• Business Partnering
• Universities, colleges, associations.

40. What Government Funds
• Investment
• Manufacturing equipment
• Energy Saving
• Designs, devices
• Innovation
• R&D, new environment technologies, agricultural,
• Product and process development

41. Process
• Where do you start ?
• How do you navigate ?

42. Process
 STEP 1: Evaluate your business situation
– Knowledge Base
– Resources
– Company Growth Cycle
• Concept
• Development
• Market entry
• Market expansion

43. Process
 STEP 2: Link company needs to various
government assistance programs
• Training Assistance
• Research
• Funding for growth
• Expanding to International markets

44. Process
 STEP 3: Develop a Plan
• Prioritize - Narrow to top 5
• Leverage - To maximize & complement
• Tax efficient

45. Process
 STEP 4: Apply
• Various Deadlines
• Unique to each program
• Typically business plan required
• SWOT analysis
• Benefits to be generated
• Planned growth of company

46. Tax Credits
• Refundable vs Non refundable
• Usually unlimited funds available
• Rule orientated criteria for eligibility
• Documentation required
• Objective vs Subjective

47. SR&ED Tax Credits
• Refundable Tax incentive program offered by the
Federal & Provincial Government to companies
which strive to innovate
• Work undertaken for the purpose of achieving
technological advancement for the purpose of
developing innovative products, processes and
services
• Incentive – Recover up to 68% of eligible
expenses

48. Ontario Interactive Digital Media
Tax Credit
• The Ontario Government offers a refundable tax credit up
to 40% for qualifying Ontario labour and marketing
expenditures to create interactive digital media products in
Ontario. Some examples;
• Video Games
• Educational Software
• Informational Products
• Online Magazines
• Interactive Web sites

49. Government Grants

50. Notable Programs: Innovation R&D
 IRAP
 Total budget $64M in Ontario annually, up to $1M per company for research, development and
commercialization of new technology.
 Targets projects with the objective to grow and generate profits through development and
commerciain Canada.
 Contains smaller grants for marketing, 1st patent filing, feasibility studies, youth hiring, digital
technology adoption of commercialization of innovative, technology-driven new or improved
products, services, or processes.
 FedDev (Ontario)
 Total budget $920M over next 5 years in Southern Ontario, up to $20M per company for
innovative projects.
 Contains multiple programs to stimulate innovation, job creation and economic growth in
Ontario communities.
 Growing Forward 2
 Total budget $417M in Ontario, up to $500K per company for innovative projects in the
agriculture industry.
 Targets initiatives in marketing, environmental impact, productivity enhancement, assurance
systems, animal and plant health, business and leadership development.
 Canada Media Fund
 Total budget $360.7M in Canada annually, up to $1M per company for the creation of
innovative and interactive digital media content or software applications.
 Supports the creation of Canadian-made videogames, software and mobile apps, curriculum-
based products, film and TV-related interactive content etc.

51. Notable Programs: Marketing &
Exports
 Export Market Access (Ontario)
 Grants up to 50% of eligible project costs for attending
international trade shows/fairs/exhibits, developing
promotional material, conducting market research.
 Can apply twice a year for total funding up to $150,000 per
company per year.
 Exporters Fund (Ontario)
 Grant to subsidize the wages of an export marketing manager
hired to work in Ontario.
 Covers up to $40,000 in wages per year for up to 2 years.
 TECTERRA
 Various grants to support the commercialization of geomatics
technologies (mapping and surveying, remote sensing,
gravimetry, spatial data management, GPS etc.)
 Up to $15,000 to attend trade shows, $50,000 for business
development training.

52. Notable Programs: HR & Training
 Youth Employment Strategy
 Total budget $330M annually Canada-wide.
 Programs to promote hiring of Canadian recent post-secondary
graduates age 30 or under for summer jobs, internships or full-time
positions.
 Provides up to 50% of eligible hiring costs up to $20,000 per hire.
 Ontario Youth Employment Fund
 Total budget $195M over 2 years in Ontario.
 Hiring incentive of $7800 to provide work placements for recent post-
secondary graduates age 15 to 29.
 NSERC Partnerships Programs
 Total budget $350M annually to support collaboration between
industry and university researchers on innovative projects in the
natural sciences and engineering.
 Interaction Grants: $5000 over 3 months to cover travel expenses to
meet with researchers to identify potential collaborative projects.
 Engage Grants: $25,000 over 6 months to collaborate with researchers
on short-term R&D projects.
 Collaborative R&D Grants: 50% of eligible project costs up to $200,000
to collaborate with researchers on projects.up to 5 years.

53. Notable Programs: Capital
Expenditure
 FedDev IBGP (Ontario)
 Repayable contribution to support innovation and expansion in
Southern Ontario SMEs.
 Covers 25% of labour, expertise, capital and non-capital costs, up to
$20M per project.
 FedNor Targeted Manufacturing Initiative (Ontario)
 Repayable contribution to support innovation and competitiveness in
northern Ontario manufacturers.
 Up to 33% of capital costs and 50% of non-capital towards upgrading
and improving manufacturing equipment to improve productivity.
 NOHFC Business Expansion Program (Ontario)
 Grant of 50% of eligible project costs to grow northern Ontario
businesses.
 Up to $1M per company for capital construction, leasehold
improvements, new used equipment, training etc.

54. Notable Programs: “Green”
Energy & Environment
 Ontario Power Authority Conservation Fund
 Total budget $5M annually, up to $500K per company for innovative projects to
create electricity conservation technologies or systems.
 SaveONenergy
 Incentives of 50-100% of project costs for businesses to reduce and manage
electricity consumption.
 Prescriptive incentives to replace or upgrade equipment, $35,000 to conduct
energy audits, $10,000 to develop plans for high energy-efficiency buildings.
 SD Tech Fund
 Total budget $325M over 8 years.
 Up to 50% of eligible costs for business partnerships and consortiums working
on an innovative clean tech project that will address issues of climate change,
clean air, water or soil quality.
 NextGen Biofuels Fund
 Total budget $500M over 10 years.
 Up to $200M for innovative projects developing cellulosic ethanol and
biodiesel technologies.

56. Break…

57. Demo Me
Jansen White
Chief DUB Officer - DUBGEAR
www.DUBGEAR.com

58. Internship Programs
Bjoern Froehlecke
Silicon Peel
Leadership Team

59. Internship Programs
• Example: triOS College places their students as
interns, free of cost, with employers in IT related
fields by the end of the students’ formal training.
• Silicon Peel members and their businesses can benefit
from access to this pool of well-educated job-starters,
many of whom are entering second careers.
• 200 to 400 hour placements, depending on program:
Information Technology Professional/Administrator
 Enterprise Web & Mobile Developer
Applications Developer
Video Game Technology / Design & Development

60. Internship Programs
• Trios College
• University of Toronto Mississauga
• Ontario Centres of Excellence
• NSERC
• Sheridan College
• Centennial College
• College Cornerstone

61. Internship Programs

62. Startup Success Funnel
Steven Cox

63. Closing Remarks
Mike Vanderlee
Meetup #16
Facilitator
Silicon Peel
‘Lean Ventures & Alternative Funding’

64. Next Meetup #17
“Big Data and Open Data”
Date: July 24, 2014
Time: 7:00pm-9:30pm
Location: Microsoft Canada
Address: 1950 Meadowvale Blvd. Mississauga, ON L5N 8L9
Registration via Eventbrite.com or Meetup.com