Entrepreneurship news: New funding pool for Canadian female entrepeneurs

Now female entrepreneurs in Canada have one more source of small business funding available to them.

Canadian companies SheEO and FreshBooks have created Act of Radical Generosity, a new initiative that aims to “dramatically transform how we support, finance and celebrate female entrepreneurs.”

Drawing from a pool of money contributed by 1,000 women, Act of Radical Generosity will “collectively select 10 women-led ventures and provide them with zero percent interest loans for five years.”

Find out more at SheEO’s website.

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Getting angel investment for your small business in Canada

Do you need to raise more funds than you can get through “love money” from family or friends, but don’t need as much as venture capitalists invest? Your small business may be ready for an angel. Angel investors are well-to-do people who invest money, usually their own, in start-up ventures. For that investment, they often get a portion of the ownership of the business.

So what do angel investors like?

  • A patentable technology or process
  • High-growth potential
  • A product or service with a distinct competitive advantage or very unique selling proposition
  • A strong team — preferably with experience

How to find angel investment in Canada

The secret to finding individual investors is through networking. Communicate regularly with business community members who are in touch with angel investors like lawyers, accountants, bankers and other business owners.

You may also want to investigate one of the angel networks that operate across Canada. Here are a few:

Happy pitching!

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The best kind of funding for your small business

start-up-funding“Where do I get the money to start my business?” is perhaps the most common question entrepreneurs ask.

However, we believe entrepreneurs should really be asking, “What is the best kind of funding for my business?”

There’s no one-size-fits-all solution when it comes to getting funding for your small business. There are many sources, varying amounts, and of course you must ensure the funding you have your eye on is actually suitable for your small business.

Here are a few things that you should keep in mind when you’re working on your small business funding plan:

  • Stage of the venture process – Are you in start-up? A growth phase? Maturity?
  • Your business’ achievements and financial performance
  • The state of your industry
  • The type of technology your business is based on, if applicable
  • The growth potential of your business
  • Amount of money you need
  • What your company is worth
  • Number of years before an exit strategy is available for investors
  • Investors’ required rate of return on their money
  • Your investors’ terms and conditions
  • Your goals for your company

 

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Fundica is the smart choice for small business funding

Why spend time and money calling around for financing for your business? Wouldn’t it be easier to be matched with the best funding sources at the click of a mouse? Canadian entrepreneurs now have a way to find and filter opportunities on their terms. Fundica is an online tool that matches entrepreneurs with smart, comprehensive and up-to-date funding – and it’s free.

Fundica has changed the way Canadian businesses find funding with their proprietary search tool and software that matches Canadian entrepreneurs with grants, tax credits, loans and equity. It filters by exact location, company size, sector and many other criteria, to make sure small business owners are getting the exact kind of funding partner they’re looking for. Fundica’s database covers over 90% of the government and institutional private sector direct funding programs/products available to Canadian businesses. Pretty cool, if you ask us.

Fundica was founded by a team of funding experts in 2010, after years of experience helping entrepreneurs find financing from public and private sources. The people behind Fundica are computer science, tax, finance and funding professionals who have collectively raised over $75 million of government and private funding, and have over 50 years combined experience in funding Canadian businesses. All this hard work means that they have strong working relationships with and an in-depth understanding of public and private funding sources.

For more information or to get started, visit Fundica’s website.

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Developing a financial resource plan for your small business

“Where do I get the money to start my business?” is perhaps the most common question entrepreneurs ask. Of course, this question assumes that they know how much money they need to start their business in the first place.

Develop a plan that outlines funding sources for your small business

Where you go for funding can be different for every small business. Several factors influence the type, cost and suitability of financing for your small business, including:

  • Stage of the venture process. Are you in the start-up phase? Are you growing your small business? Is your business well-established?
  • Your small business’ achievements and financial performance to date
  • The state of the industry your business is in
  • The type of technology your business is based on (if any)
  • Potential growth of your venture
  • Number of years before an exit strategy is available for investors
  • Investors’ required rate of return on their money
  • Amount of money you need
  • What your company is worth
  • Your goals for your company
  • Investors’ terms and conditions

There are many other factors that will come into play when it comes to choosing the most appropriate sources of funding for your business.

Generally, a new small business can be funded in one of two ways: equity (ownership) or debt (loan). With equity financing, you exchange a piece of ownership of your business for the investment capital – you’re giving up part of your company to receive money to start or grow. The amount of your company you give up is negotiable, but it’s related to the size of the investment and the value of your company. If you fail, investors lose their money – you’re under no obligation to repay the investment. With debt financing, you borrow money and repay it over time to the lender. If you fail, you’re still obligated to repay the loan in full.

Money is just one factor of a successful small business

Most new entrepreneurs believe that if they have enough money, they can make any business model into a successful business. Sadly, there is nothing further from the truth. A bad idea is a bad idea is a bad idea, no matter how much money you throw at it.

The reality is sufficient start-up capital is only one element of a successful new business. Research shows that the small business owner’s reputation and depth of their social network are important to securing financial help. Not all businesses need start-up capital – but for most, the need for money comes at some point in their business’ life. So, develop a solid financial strategy, but remember that money is but one pillar of a strong small business.

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