Innovation: The BDC perspective

By: Theodore Homa, International Consulting

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Entrepreneurs First

Our mission

Help create and develop Canadian businesses through financing, venture capital and consulting services, with a focus on small and medium-sized enterprises (SMEs)

Our goalsSupport the growth and competitiveness of Canadian businessesDevelop Canada’s entrepreneurial potentialBe innovative, agile and financially sustainable

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Our clients

> 75% have less than 20 employees

> 7.5% have been in business less than 2 years

> 82% survive more than 5 years

> 31% of BDC loans support Innovation (R&D, equipment & computers, market development)

> Twice as many start-ups than market (10% versus 5% market)

> More fast-growth firms than market (23% versus 13% market)

1 BDC internal estimate using fiscal 2009 data

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Supporting Entrepreneurs

FINANCING CONSULTING VENTURE CAPITAL

Long-term&

Subordinatedebt financing

Building the Entrepreneur’s capacity

Investment in technologycompanies

$14.8Boutstanding

2.8%1

Of Canadian term financing market

2,500+Mandates in 2010

$725M Committed

11%2

Of reported VC direct transactions (number) in Canada

1 Statistics Canada Survey of SME Financing Suppliers, 2009 release (based on calendar year 2008)2 Fiscal 2010 (Thomson Reuters, June 30, 2010 )

Incubate innovation in business

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Capital

Innovation Framework

Competencies

Capacity(to support incremental

innovation)

Creation(of radical innovation)

Radical Innovation

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VC Ecosystem

Entrepreneurs

Angel Investors

GP investors

Investment funds

Exit

(IPO / M&A)

Innovation

Information and Communications Technology

ICT Investments

62%WEB PRESENCE

Hardware infrastructure

Business solutions

Mobile solutions

40%

35%

34%

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ICT: Canadian Attitudes

> VISUAL?

Entrepreneurs can be intimidated by technology

STAGES

Awareness

1 3

AdoptionConsideration

2

4

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Innovation

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What BDC Will Do

An unwavering commitment to supporting innovation

1 888 INFO BDC www.bdc.ca/ics

Theodore Homa

Senior Partner, International Consulting Service

1 (514) 283-8742

Theodore.Homa@bdc.ca

Thank You