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IT Financing in Canada
OverviewThis page will present the sources of capital for information technology companies in Canada. Funding for information technology companies is provided by a variety of sources such as the federal government and venture capitalists. Many of these companies issue stock to raise additional capital by going public. This analysis will provide an overview of where these stocks are listed. The Canadian Government's Role in IT Financing As an entrepreneur who would like to start a small business, or who is looking to expand The federal government has a number of organizations, initiatives and tools designed to help you get your small business up and running. The Canadian Government takes an active role in the start-up and success of IT and other small business ventures. Through a combination of strategic policies, programs and partnerships, the Government of Canada continues to build the momentum to secure Canada's success in the new millennium. The Ministry of Industry department takes the needs of small and medium-sized enterprises (SMEs) seriously by developing a range of information services and products to provide Canadian small businesses with the tools and support they need to prosper in the new economy. Program areas include fostering scientific research, promoting investment and trade, small business development, promoting tourism, setting telecommunications policy, developing industry and technology capabilities. The Federal Economic Development Initiative in Northern Ontario (FedNor) and three regional economic development agencies—Atlantic Canada Opportunities Agency, Canada Economic Development for Quebec Regions and Western Economic Diversification Canada—have been set up to address regional needs. Each works with other federal departments, provincial and municipal governments, and the private sector to provide you with access to capital, markets, information and skills development. Financial Support for Research and Development Whether you are just entering the research and development phase, or are in the proof-of-concept stage, IRAP's financial assistance can help you acquire the resources you need to proceed further. IRAP works with you throughout the research and development process to help you refine your product, process or service long before it is introduced to the market. Based on demonstrated need, IRAP may fund up to 50 percent of certain project development costs. Depending on the complexity of the project, funding ranges from $5000 to a maximum of $350 000. [Source: Strategis Canada] The Role of Venture Capitalists in IT Financing The Venture Capitalist community in Canada is extremely active and influential. The most well-known intermediary bringing together IT investors and new IT companies is The Financing Forum . The Organizers of the Canadian IT Financing Forum have assembled an impressive group of Canada's and the United States' most influential venture capitalists who serve as the Forum's Investor Advisory Board. Members of the Investor Advisory Board help to recommend companies for consideration as Forum presenters and play an active role in helping to recruit the many Canadian and Foreign investors that are invited to attend each Forum. IT investors rely on The Financing Forum as a source of high quality companies showing great potential for rapid growth. Companies looking for financing know that they are networking with the best and most active investors interested in Canadian IT investments. The Members of the Canadian IT Financing Forum Investor Advisory Board include: Bill Bryant - Atlas Venture - USA Other Participants in IT Financing The Canadian Stock Market Canada has its own stock exchanges which list the IPOs of information technology companies. The largest and most advanced stock exchange in Canada is the Toronto Stock Exchange (TSE) and this is where most tech stocks are listed. Alberta Stock Exchange *IMPORTANT NOTE* The Winnipeg Stock Exchange merged operations with The Canadian Venture Exchange (CDNX) on November 24, 2000. This site is being maintained for archival and information purposes. Continuing information and trading activity on securities that formerly were exclusively listed on The WSE is now available through CDNX. Details are available at the CDNX website.
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