I want to draw your attention to a blog post that I wrote on the BlackBerry Partners Fund website a few months ago. In times of recession, when cash is tight and purchase orders are scarce, understanding how and where to receive financing becomes of paramount important.
For additional details, please refer to the full article.
Here are some of the highlights:
- Apply for IRAP funding (provided by the NRC)
- Apply for SR+ED tax claims through the Scientific Research and Experimental Development (SR&ED) Tax Incentive Program
- Funding Source: The Investment Accelerator Fund (IAF). Through investment of up to $500K, the IAF helps launch high potential technology ventures.
- Funding Source: MaRS Discover District has a number of services that can help entrepreneurs. They have funding from the Ministry of Research and Innovation for business projects and investments of up to $500,000 in seed capital.
- Ontario Centre of Excellence for Communications (OCE) and Information Technology helps startups by co-investing in the research and development of leading-edge, industrially relevant, technologies through partnerships at universities, and moving the results into the marketplace, through existing companies or new, spin-off enterprises.
If you are a mobile start up, please feel free to apply for Jump Start Financing at the BlackBerry Partners Fund, which can invest up to $500K USD into innovative start ups.
I am not surprised to read (Newsweek via MSNBC) that job opportunities are on the rise in the cleantech “green-revolution” sector. Notable niche areas mentioned include solar energy, biofuels. The article describes an upcoming trend:
Based on the flow of venture capital, K. R. Sridhar, CEO of the fuel-cell
start-up Bloom Energy, believes the clean-tech sector could produce 50,000 new
jobs by 2010. Peter Beadle, president of Greenjobs.com, cites estimates that the
solar sector alone could employ 2 million people by 2020.”
Interestingly, these jobs are geographically dispursed (across the US), unlike clusters of high-tech startups found in Silicon Valley during the tech boom.
From a finance perspective, analysts at Lux Research state that venture-capital investments in the clean-tech sector jumped from $623 million to $1.5 billion (2005 to 2006), led by solar power and biofuel.
Okay, so chances are that you already know that the global water supply is in jeopardy. You probably also know that global warming is going to impact current water conditions in two ways among many. Glacial water run-off, and land-based aquifers are slowly declining in their supplies and the trend looks like it is going to continue.
The harsh reality is that this is going to happen for at least 15-20 more years, and as a consequence, Blue Gold is going to increase in value. So, how are you going to capitalize on water? Do you know your investment opportunities? Quite Contrarian produced a nice little summary entitled Investing in Water Stock: Options for Profiting from ‘Blue Gold’ that discusses a few ways in which you can position yourself to capitalize on water stocks, utilities or ETFs (exchange traded funds). Get in the know.
Dramatic increases in Venture Capital in the area of Biofuels was realized in 2006. I just caught wind of an article from the Associated Press, Biotechnology that highlights one of the largest one-year increases in venture-backed funding I have ever seen.
An interview at Associated Press with Ron Pernick, who co-founded Clean Edge (a company tracking venture capital investment), said that “Venture capital investment in biofuels has increased from less than $1 million in 2004 to $20.5 million in 2005 to $813 million last year [in 2006]. Much of that investment is flowing to biotechnology companies that genetically engineer microbes that produce enzymes needed to break down crops into alcohol.” If we’re cracking out the calculator, that’s about a 4000%, or 40x increase year-over-year! Now, it is extremely helpful to the venture investors, and the companies, that the US Department of Energy (DoE) has awarded $385 million over the last four years (to six companies, albeit) to develop ethanol.
Please see Biofuels Spark Biotech Rally for the full article.
Are you investing an a Biofuel company yet? Maybe you should jump on that wagon before it leaves town…