Innovation: The BDC perspective By: Theodore Homa, International Consulting.

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Presentation transcript:

Innovation: The BDC perspective By: Theodore Homa, International Consulting

2 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 goals Support the growth and competitiveness of Canadian businesses Develop Canada’s entrepreneurial potential Be innovative, agile and financially sustainable

3 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

4 Supporting Entrepreneurs FINANCINGCONSULTINGVENTURE CAPITAL Long-term & Subordinate debt financing Building the Entrepreneur’s capacity Investment in technology companies $14.8B outstanding 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

6 Capital Innovation Framework Collaboration Competencies Capacity (to support incremental innovation) Creation (of radical innovation)

Radical Innovation

8 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 %

12 ICT: Canadian Attitudes >VISUAL? Entrepreneurs can be intimidated by technology

STAGES Awareness 13 AdoptionConsideration 2 4

4 Innovation

15 What BDC Will Do An unwavering commitment to supporting innovation

1 888 INFO BDCwww.bdc.ca/ics Theodore Homa Senior Partner, International Consulting Service 1 (514) Thank You