Northumberland Community Futures Development Corporation (Northumberland CFDC) – Nventure (2021)

ByMaurice
  • This program is currently closed.

Description:

Nventure is a co-investment fund (referred to as a “sidecar”) for technology startups and innovation-driven enterprises that have high-growth potential and substantial presence and impact in Northumberland County. It supports investment by qualified, early-stage asset class professionals (“Investors”), including angel investors, venture funds and other similarly experienced and accredited investors. Nventure may be accessed to de-risk or to augment an investment.

Comments on Funding:

Nventure will match eligible private-sector investments that Nventure approves on a 3:1 basis normally up to $250,000. Each such co-investment by Nventure will be on the same terms as the applicable private-sector investment.

Eligibility:

Investors:

  • will ordinarily be a member of AIO, NACO, or the CVCA (or a member of a group that is itself a member of AIO, NACO or the CVCA) but may be a member of any similar Provincial or international group representing qualified and accredited early-stage asset class professionals;
  • must be the lead investor in the proposed financing transaction;
  • must meet the definition of an “Accredited Investor” as set out in Ontario securities legislation;
  • must have participated in and successfully exited from one or more prior early-stage investments;
  • need not be a resident of Northumberland County, the Province of Ontario or Canada to apply for funding from Nventure.

Investees must be private for-profit corporations existing under the laws of Canada or a Canadian Province that have:

  • 75% of its assets and 75% of its employees domiciled [regularly report for work at Investee facilities located in] in Northumberland County;
  • registered office in Ontario located in Northumberland County.

Nventure does not invest in the following areas:

  • resource extraction industries;
  • hotels, restaurants, bars, resorts and other tourism-related industries;
  • non-scalable, traditional or “main street” small businesses for which debt financing for stabilization or expansion is preferable to venture capital.

Applications Steps:

1

An Investor or a prospective Investee may apply for funding from Nventure. Nventure is premised upon a qualified lead Investor performing the necessary due diligence, business viability assessment and valuation of a company. If Nventure’s investment committee is satisfied with the qualifications of the lead Investor, Nventure will co-invest on the same terms as the lead Investor.

2

Applications are accepted on an open and ongoing basis and co-investment decisions will normally be made within sixty (60) business days from the date of submission of complete documentation, including the due diligence report prepared by the lead Investor and the terms of the proposed investment.

Documentation Needed:

The lead Investor profile and documentation to be provided includes:

  • completed Investor Information Form;
  • investor biography, including description of prior investment transaction experience;
  •  evidence of membership in group representing qualified and accredited early-stage asset class professionals.

Investee company profile and documentation to be provided includes:

  • completed Investee Information Form;
  • Articles of Incorporation;
  • Certificate of Good Standing or equivalent;
  • Due Diligence Report completed by Investor;
  • pre-closing capitalization table;
  • most recent financial statements.

Investee Reporting Requirements Investee’s receiving an investment from Nventure will be required to provide the following information on an annual basis via a short survey until Nventure is no longer invested in the Investee:

  • # of products commercialized;
  • Gross Sales;
  • Gross Profit;
  • # and type of jobs created;
  • follow-on investment raised;
  • other incremental funding secured;
  •  # of patent applications submitted;
  • # of days until first sale/commercialization.

Program Contact:

Nventure – Financing and Strategy for Entrepreneurs

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    About the author

    Maurice

    Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Ontario to identify and maximize government grants to grow their business. Click here to learn more about Moe’s background and how he can help your business.

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