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

  • 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:

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.

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