Let’s start with a bit about Mark who started his career spending 6 years on Bay Street in Toronto. Mark also has his CA designation and while he has much of the discipline that a CA designation brings he comes across as the founder of a start-up. During his stint on Bay Street Mark did 25 acquisitions and he loves legal documents (go figure ... but hey I love financial and year end reports) and the intensity of deals.
In 1998 he entered the Tech Scene in Montreal. His speciality was raising money for existing companies’ series B rounds. Mark mentioned that the B round is probably the toughest round to raise dollars for. A Series A round is based on promise and future valuation; however, B rounds are more about traction and results.
Notes on raising funds in Canada:
- Investment community in Canada is small and well connected.
- New money in calls the shots.
- US VC are very sceptical of any CDN company that doesn't have a CDN VC
- To raise money in the US you MUST have local representation.
- Validation is essential to raising money today
o Validation of the product o There MUST be people using it.
o Investors want the ability to chat with your users.
There will be three more posts based on the session:
- Investor / Entrepreneur 1st contact
- Barriers to growing a web based company
- Entrepreneurial Quebec (funding)
Thank you again Mark.
- Ian Graham