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.