Category: Private Equity

New Alternative to Small Business Government Grants in Ontario

Posted by WFG – October 7, 2011

The purpose of this article is never meant to be undermining the benefit of government grants. In fact, as small business owners, entrepreneurs should always be aware of government grants available to their companies. That said,  except for some specifically allocated funding for government subsidized innovative projects, government grants in Ontario usually come in small amount, and could hardly be count on in terms of facilitating business growth.

 

Private funding is now available for small businesses in Ontario

A great alternative to traditional funding options for small businesses is available. Many private investors are now offering financial opportunities to small businesses with great potential. Funding of such is often referred as venture capital. The transaction is straight forward, venture capitalists basically purchase part of the company based on a strong goodwill forecast, and the company seek fast growth opportunities with the extra capital invested.

The benefits of private equity vs traditional ways of funding are:

  • amount is large enough to fund the business with the desired expansion
  • no collateral is required
  • no complicated approval process such as bank loan applications
  • investors are usually experienced business professionals where the company could get valuable advice from

There are companies and individuals where small business owners can turn to for private funding opportunities. For business owners in Ontario, check out pitchyourbusiness.ca for opportunities to meet a group of venture capitalists in Toronto.

Small business owners: Meeting private investors in Toronto

Posted by WFG – October 6, 2011

Small business owners in Toronto and the surrounding areas now have a better chance of getting private funding. A group of private investors are holding business pitching events for these entrepreneurs to present their business. Read the rest of this article

Find your angel investors in Toronto

Posted by WFG – October 4, 2011

As the economic engine of Canada, the dynamic area of Toronto and its surrondings serves as a piece of fertile land for the growth of all types of businesses, including many small to medium sized enterprises (SME’s).

How to make a business successful in a competitive metropolitan area

Not only being competitive as a city in the world, Toronto is also a competitive market by itself. Small businesses in the easy-to-enter market need to compete with many others. Many small business owners try to cut down the costs and compete by lowering the prices, and that is painful, if not vital.

In order to gain real momentum on the growth of a small business, one needs to build the business in scale. Larger companies are usually able to negotiate a better deal on the supplies and and the same time keep a high profit margin. But it is often easier said than done, because it requires a lot of inputs to facilitate business expansion, most specifically, money.

Private angel investors is the most efficient way to go

Many small business owners have tried many times applying for loans from the banks, and few have successfully borrowed enough money from the banks to fuel the business expansion that they need. It is true that banks are very risk averse, and very cautious about loaning to small businesses with no collecterals.

That said, private investors are the only source of funding a small business could get efficiently. Usually they are referred as angel investors or venture capitalists. To get funding, small business owners do not need to provide collecterals, but have to sacrifice part of the company, depending on the deal, but considering the perspectives of the business expansion, the business owner still gets more than he owns after all. Another merit of giving shares to the investor is that the investors are usually experienced entrepreneurs, with them on the board, the company has a better chance to avoid mistakes in the fast expansion.

To find angel investors in Toronto, consult the Winflow Financial Group, or register today at pitchyourbusiness.ca for your chance to meet private investors in Toronto.

Start-up owners: when is a company ready for venture capital?

Posted by WFG – October 3, 2011

Most owners of start-up businesses dream about drawing venture capital to their company and expand the business exponentially in a short period of time. But when is a company ready for venture capital? Knowing the answer would make it a lot more efficient for a small business owner to reach venture capitalists and get the funding. Read the rest of this article

Funding a small business: how to prepare for a venture capitalist meeting?

Posted by WFG – September 30, 2011

Opportunities of meeting venture capitalists are precious for small business owners. As a small business owner, it is important to be well prepared for every meeting with potential investors. Here are several preparation tips that could help success in  your presentation to private investors. Read the rest of this article

How small businesses attract investors: make reasonable financial forecast

Posted by WFG – September 29, 2011

In dealing with potential investors with venture capital, many small business often ignore the importance of making a reasonable financial forecast in business pitching.

Investors need to see a reasonable forecast before making any move

To explain this point, first put yourself in an investor’s shoes. As an investor, what you are doing is to put a certain amount of money into a company, Read the rest of this article

Meeting venture capitalists: what questions to expect from investors

Posted by WFG – September 28, 2011

Venture capital has been a popular way of funding small businesses, especially start-ups since the early 1990s. Most small business owners today rely on venture capital from private investors when executing business expansion, because it is usually not easy for small Read the rest of this article

What makes the perfect investment pitch?

Posted by Winflow – September 23, 2011

What makes the perfect investment pitch? In your business presentation, you may have well considered every possible scenario and put all elements into the business pitch, but often what makes it perfect are the little details.

 

Personal Backgound

This can be thought as entirely irrelevant to the bus Read the rest of this article

How to be a successful entrepreneur?

Posted by Winflow – September 20, 2011

How to be an entrepreneur? How to be a successful entrepreneur? These basic yet difficult questions make many hesitate before starting their own businesses.

A right business idea gets you on the right track

You may feel that you are born to be an entrepreneur and have business ideas flash in your mind everyday. Read the rest of this article

Venture Capital Providers for Small Businesses

Posted by WFG – September 19, 2011

Many small business owners think of getting venture capitalists for expansion. Businesses that developed using funding provided through venture capital has been popular since the 1980′s. VC investment were peaked during the late 1990s when all the IT bubbles expanded. Today, the market has gradually changed and venture capital providers are not the same as 10 or 15 years ago. Here are two major phenomenons that we see in the current business market.

 

Large Venture Capital Investment Companies Are Not for Small Businesses

Over the recent decades, a few large investment companies supported and made success a list of famous companies such as eBay, google, facebook, etc. But these type of companies are nowadays more concentrated in funding companies that are in their mid to late stage of development. They typically provide millions of dollars at least on each project, and only to expect these companies to grow exponentially in a short period of time and lead the world industry.

That said, as a small business owner, it would not be easy to seek funds from such companies because it is not easy for the analysts to see potential of your company to become the world’s top, and that is the criteria they are looking for.

 

Potential Venture Capital Providers for Small Businesses do not understand your industry

Many small business owners find private equity providers either through referral or advertising. But the most likely situation is that the VC, though with enough funding and interested in investment in a small business, does not have enough related knowledge to analyze your business and make a decision.

The only solution here seems to be finding more potential investors, present your business idea to them one by one, until you find one who has knowledge in your industry and would like to invest. But that would cost much time and effort as a searching process. An alternative way is to find a group of investors from various industries and pitch you business to all of them, in which case finding one who understands your business and is willing to invest is much easier.

There are TV programs that provide this opportunity, but the application process could be painful. And most importantly, many people are not comfortable having their business idea broadcasted before it is realized

Now, small business owners have an alternative great choice for pitching their businesses to VC’s. Pitchyourbusiness.ca provides this opportunity for small business owners to meet the VC’s in confidence in an boardroom setup. The VC’s are hand selected to represent an broad range of industry, that makes the perfect venture capital providers for small businesses. Presentation sessions are held in major cities such as Toronto, Montreal, Vancouver and Calgary in Canada.