It was a fun quick trip in Vienna. It is the first European country that I ever visited in my life.

http://vimeo.com/channels/ent101

MaRS offers a complete set of videos that provides business 101 to those who want to create a startup. The videos are pretty straight forward and the speakers are experienced entrepreneurs or people in the industry who provides great insights and share experiences.

I found out a quality of life index of over 100 countries. Canada is positioned at 11th together with other 8 countries.

Quality of Life Index 2009

Read more here.

Thanks for Dan M., JS C., Mark E. and Tim T. for your suggestions!

This is a complete list of all the VC firms in Canada. JS made a good suggestion of adding of which firms invested in the last 12 months. I will add this info in the next update.

= A must see.

= A firm dedicated mostly in early stage companies.

= Firm that invested in any startup in the last 3 months (from September 09). You can click the icon to see the news related to the investment.

= Firm that received fund or selected to participate or manage a province venture capital fund in the last 2 months. You can click the icon to see the news.

= Firm that sold or IPO a company in the last 3 months (from September 09).

VC firms only

Anges Québec NEW INCLUSION!

AVAC Ltd.
Avrio Ventures Management Corp.

Blackberry Partner Fund NEW INCLUSION!

Brightspark Capital
Business Development Bank of Canada (BDC) Venture Capital

Canadian Medical Discoveries Fund Inc.
CAPE Fund/Fonds CAPE

Celtic House Venture Partners
CentreStone Ventures Inc.

Covington Capital Corporation

Desjardins Capital de risque

Discovery Capital Management Corp.

Elgner Group Investments Ltd.

Emerald Technology Ventures

Fond de Solidarité FTQ NEW INCLUSION!

Foragen Technologies

Genesys Capital Partners

Greenstone

GrowthWorks

GTI Capital

Hargan Ventures

ID Capital Management Inc.

InNOVAcorp – Halifax NEW INCLUSION!

Innovatech Québec

iNovia Capital Inc.

Investeco Capital Corp.

J.L. Albright Venture Partners (JLA)

Jefferson Partners

JOG Capital Inc.

Lumira Capital

McLean Watson Capital Inc.

Mercator Investments Limited

Montréal Startup NEW INCLUSION!

MMV Financial Inc.

Multiple Capital Inc.

New Brunswick Innovation Foundation

Novacap NEW INCLUSION!

Ontario Venture Capital Fund (OVCF) 

Propulsion Ventures Inc

Rogers Ventures NEW INCLUSION!

RBC Venture Partners

Renewal2 Investment Fund

RHO Venture Capital NEW INCLUSION!

SAINT – Saskatchewan Angel Investor Network

Skypoint Capital Corporation

Springbank TechVentures

Société Innovatech Québec

Summerhill Venture Partners

Tandem Capital NEW INCLUSION!

Tech Capital Partners Inc.

TELUS Ventures

Trellis Capital Corporation

VanEdge Capital NEW INCLUSION!

Venture Coaches

Ventures West Capital Ltd.

Walsingham Fund

WesleyClover NEW INCLUSION!

Yaletown Venture Partners

This is a complete list of all the VC firms in Canada.

= A must see.   = A firm dedicated mostly in early stage companies.

VC firms only

AVAC Ltd.
Avrio Ventures Management Corp.
Brightspark Capital
Business Development Bank of Canada (BDC) Venture Capital
Canadian Medical Discoveries Fund Inc.
CAPE Fund/Fonds CAPE

Celtic House Venture Partners

CentreStone Ventures Inc.
Covington Capital Corporation

Desjardins Capital de risque

Discovery Capital Management Corp.

Elgner Group Investments Ltd.

Emerald Technology Ventures
Genesys Capital Partners
Foragen Technologies
Greenstone
GrowthWorks

GTI Capital
Hargan Ventures

ID Capital Management Inc.

Innovatech Québec

iNovia Capital Inc.

Investeco Capital Corp.

J.L. Albright Venture Partners (JLA)

Jefferson Partners

JOG Capital Inc.

Lumira Capital

McLean Watson Capital Inc.

Mercator Investments Limited

MMV Financial Inc.

Multiple Capital Inc.

New Brunswick Innovation Foundation

Ontario Venture Capital Fund (OVCF)

Propulsion Ventures Inc

RBC Venture Partners

Renewal2 Investment Fund

SAINT – Saskatchewan Angel Investor Network

Skypoint Capital Corporation

Springbank TechVentures

Société Innovatech Québec

Summerhill Venture Partners

Tech Capital Partners Inc.

TELUS Ventures

Trellis Capital Corporation

Venture Coaches

Ventures West Capital Ltd.

Walsingham Fund

Yaletown Venture Partners

This is a complete list of all the Private Equity firms in Canada.

= A firm dedicated more to Private Equity or late stage startups.  = A mix firm with investment in VC and PE.

PE and VC firms

32 Degrees Capital

Aberdeen Gould

Annapolis Capital Limited

ARC Financial Corporation

Argosy Partners – Shotgun Fund & Succession Fund

AXIS Investments Fund

Balaton Group Inc.

Banya Capital Partners

Bedford Capital Limited

Birch Hill Equity Partners

BMO Capital Corporation

C.A. Bancorp Inc.

CAI Capital Management Co.

Caisse de dépôt et placement du Québec

Canada Pension Plan Investment Board

Canterbury Park Capital L.P.

Chadbourne & Parke LLP

Clairvest Group Inc.

Cobalt Capital Inc.

Coller Capital Limited

Cordiant

Corum Group

Crown Capital Partners Inc.

DAI Capital Advisors Inc.

EdgeStone Capital Partners

EnerTech Capital Canada Ltd.

Hilco Consumer Capital Corp.

Kensington Capital Partners Limited

KERN Partners Ltd.

Killick Capital Inc.

Kilmer Capital Partners Limited

Integrated Partners

Latitude Partners Incorporated

Lions Capital Corp.

Invico Capital Corporation

JMI Equity

Manvest Inc.

Mosaic Venture Partners

Novacap

OMERS Private Equity

ONCAP L.P.

Osprey Capital Partners

Penfund

PFM Capital Inc.

Pinnacle Capital

PRIVEQ Capital Funds

Scotiabank Private Equity

Stable Capital Advisors

Summer Street Capital Partners, LLC

TD Capital Private Equity Investors

Teachers’ Private Capital

Torquest Partners

Tricor Pacific Capital, Inc.

TriWest Capital Partners

Turtle Creek Private Equity

Vancity Capital

Victoria Park Capital Inc.

Whitecastle Private Equity Partners Fund LP

Wynnchurch Capital, Ltd.

Other Firms Related to PE & VC industry (Some of these companies may be venture capital and private equity firms but they were also investing heavily in other areas in finance, such as asset management, etc.)

This is a very interesting and basic book about Venture Capital industry. It does inform you some tips about what kind of skills and career path that you should take before joining in. Also, it provides and introductory level of terms and vocabulary for you to get used to before trying to get in a VC firm.

I do not recommend just to read this book alone as a way to have a strong idea of the industry. You should read a lot of other materials spread all over the Internet so you can really have a better idea if you really do want to invest your time and money into the career of a VC.

MIT Open Course Ware

Managing Innovation and Entrepreneurship

Managing Innovation: Emerging Trends

Managing Innovation: Emerging Trends

Early Stage Capital

Early Stage Capital

Designing and Leading the Entrepreneurial Organization

Designing and Leading the Entrepreneurial Organization

Law for the Entrepreneur and Manager

Law for the Entrepreneur and Manager

Entrepreneurial Marketing

Entrepreneurial Marketing

Entrepreneurial Finance

Entrepreneurial Finance

Listening to the Customer

Listening to the Customer

Pricing

Pricing

The Nuts and Bolts of Business Plans

The Nuts and Bolts of Business Plans

Technology Strategy

Technology Strategy

G-Lab: Global Entrepreneurship Lab

G-Lab: Global Entrepreneurship Lab

Share and Enjoy:

]]> http://www.chimkan.com/2009/10/21/resources-to-support-entrepreneurs/feed/ 0 http://www.chimkan.com/2009/10/20/book-review-careers-in-venture-capital-2005-edition-wetfeet-insider-guide/ http://www.chimkan.com/2009/10/20/book-review-careers-in-venture-capital-2005-edition-wetfeet-insider-guide/#comments Wed, 21 Oct 2009 04:24:57 +0000 Chim http://www.chimkan.com/?p=641

Incredibly enough, this is a very similar book to Vault Career in Venture Capital book. They talk about the same introductory ideas for those who wants to pursue a career in the Venture Capital industry. It does provide a short story of the industry. Some basic concept about the industry, firms, Job, workplace, getting hired and other references. Again, this is not enough if you do really want to invest in this industry. You have to research and read more about the venture capitalist, you have to learn about Business plan, entrepreneurship, etc. It is not as easy as you think to get in the industry.

The Back of the Napkin: Solving Problems and Selling Ideas with Pictures

I read this book and it is really great to show a new way of structure problem solving framework.

It provides a a good introduction about the benefits of the visual thinking. Then, it provides a step-by-step walkthrough about how to detect, solve and show problems through the use of our visual faculties.

It first shows us how we can enhance our ability to see critically by looking, seeing, imagining and showing. Then, it provides the SQVID method of analytical thinking. It helps our right-side of the brain to be better connected to the left-side. So, we can draw and think at the same time. Moreover, it provides the [6][6] framework that helps us to problem solving.

The book is very easy to read, but it does not lack anything from its simplicity. It provides a complete framework solution for business issues and it’s a great book for those who wants to see creative ways of problem solving.

I would also recommend this book for those who loves TUFTE. Tufte’s books give guidelines of what is good or not in the information design knowledge. The Back of the Napkin provides the how to create amazing graphics and pictures of our problems.

Negotiation - Time, Information and Power

There are three main variables in negotiation: time, information and power.

Time is important because the lack of it can cause great damage for the person or organization.

Imagine that two venture capital firms have a great interest in a startup company. They know that one of them will close a deal tomorrow. So, the most important factor in the negotiation is time. Who is going to have more time to think and negotiate?

Information is important when it can greatly affect the value or the conditions of the deal.

Let’s think that a biotechnology startup has a phase IV (read more about clinical trial) drug waiting for approval. A private equity firm is very interested in the company. It knows that if the company succeeds in the trial, the valuation of the company will be astronomical and it will not be able to get a good deal with the company. However, if the drug does not pass the trial, the startup will not have great value at all.

In this case, information is extremely important for the negotiation.

Lastly, power is also extremely important. Usually, one side has more resources and it will use this in the bargaining process.

A very typical example of today, MBA students graduate and can’t find jobs. Those who get offer do not have power to negotiate better salary and bonus because the company has the money and has the power to hire someone or not.

Risk is a tool in negotiation that can help you to take advantange from the other side of the table. It depends on two factors:

- Circumstances

- Risk attitude from the negotiator

Risk can be used to ask for bold concession from your partner. However, if the negotiator is risk-aversed, the chance is that the other side will take advantage and try to ask for more concession by aggressive moves.

What is negotiation?

Last weekend, I had an introductory training about Negotiation at Dale Carnegie. It was a very interesting experience to know other people, different negotiation techniques and negotiation styles.

Starting today, I will post a lot of little posts about what I’ve learned during the two day course. 

Today, I’m going for the definition of negotiation.

Negotiation is an art where two sides discuss and agree on terms leading to achievement of their goals.

Human beings negotiate every single time. For instance, salary, prices, services, what restaurant to go, etc.

Personally, I see that if I get myself prepared to the negotiation, the odds to have more success is much higher for me. I will be able to defend my interests better and I even know when I have to stop negotiating when something is not favorable to me.

There is an awesome place to read negotiation deeply: http://en.wikipedia.org/wiki/Negotiation

Differently from Wikipedia, I will show the techniques and advices that are different from what is being told from Wiki.

Leslieville is home to an array of cafes and antiques stores.

Toronto is a very international and diverse city. It is one of the biggest city in Canada with 2.5 million of people (Greater Toronto has 5.6 million). 

I went there three times in my life and I have to say that it has its own big city charm with its Eaton Center and the Queen West District. Compared to other Canadian cities, it has a metropolitan vibe with its traffic and people rushing to schools, work and entertainment. 

It has a strong theater, music, painting and modern art scene. 

You should read the New York Times ‘36 Hours in Toronto‘ and follow its recommendation of how to visit this pretty city.  Also, visit my Google Maps that I created based on the article.

This is a very good and concise presentation about venture capital, the three phrases of venture capital investing, SBICSs and SSBICs (types of small business programs), state government initiatives, key challenges and best practices.

VC Management Challenges and Best Practices

Download the presentation here: http://ocw.mit.edu/NR/rdonlyres/E8256F94-7B44-4E02-8511-7366DE6B20CA/0/class16_vc.pdf

To start this post, I recommend you to read my last post:

http://www.chimkan.com/2009/05/05/venture-capital-method-valuation-considering-granting-stock-options-to-management-team/

Now, imagine that at the start of year 3, John project that his startup will not meet the financial targets, but not until the end of 8 year. What share should Ada seek today? And what the equity stake will round 2 investors seek?

So, it means that the financial schedule will slip for 3 years.

Observation 1: Ada will be able to change her investment because she already has done it. (She invested $ 10M for 45.3% of the company).

Observation 2: Now that Ada’s investment lasts 8 years instead of 5 years, what is her Internal Rate of Return*?
*IRR: http://en.wikipedia.org/wiki/Internal_rate_of_return
We can say that IRR is the opposite calculation of the Rate of Return.

First, you have to lay out the investment in years:

Year 1: -$5M (how much she needed to pay)
Year 2: 0 (No money given to her from the company)
Year 3: 0 (No money given to her from the company)
Year 4: 0 (No money given to her from the company)
Year 5: 0 (No money given to her from the company)
Year 6: 0 (No money given to her from the company)
Year 7: 0 (No money given to her from the company)
Year 8: +$53.56M (She should receives 42.18% of the total value of the company $127M)

You can use this formula in Excel >>> =IRR([ARRAY OF THE CASH FLOW])

Ada’s IRR is 23% instead of 50%.

The new investors will want:

$ 4Mx(1.3)^5=$14.85M

It means they will want:

$14.85M/$127M =  11.69% of the equity. The $127M is the value of the company in 7 years discounted the management shares, look the previous posts for more information.

To calculate the number of shares:

Let’s pick up the total shares from John’s and Ada’s:

1,823,636

Let’s calculate how many shares they have to issue to the new investors:

X/(1,823,636+X) = 11.69%

X = 0.1169X + 159750

X = 241,403 new shares

The price is given as this:

P/S = $ 4M/241,403 new shares = $16.56/share

The new investors should pay $16.56/share for 241,403 new shares of the company.

Share and Enjoy:

]]> http://www.chimkan.com/2009/05/07/venture-capital-method-valuation-considering-schedule-slips-in-the-startup/feed/ 3 http://www.chimkan.com/2009/04/24/my-favorite-big-picture-calendar-compact-calendar-by-david-seah/ http://www.chimkan.com/2009/04/24/my-favorite-big-picture-calendar-compact-calendar-by-david-seah/#comments Sat, 25 Apr 2009 00:45:05 +0000 Chim http://www.chimkan.com/?p=186

David Seah is a functional designer creating very interesting calendar such as the Compact Calendar 2009. It allows you to make a big picture plan of what the most important days are and what you have to do on those days.

Official Compact Calendar Page

Check it out and create your on calendar now: http://davidseah.com/page/compact-calendar

A guide in Tibet

This is a complete guide of all the most important resources about venture capital industry in Canada.

It is a good way to start your research about VC industry if you are in Canada. 

What Venture Capital is?

http://en.wikipedia.org/wiki/Venture_capital

Associations, Networking and Groups

The National Venture Capital Association (NVCA), comprised of more than 450 member firms, is the premier trade association that represents the U.S. venture capital industry.

The CVCA – Canada’s Venture Capital & Private Equity Association – represents the majority of private equity companies in Canada, with over 1700 members.

Ottawa Centre for Research and Innovation (OCRI) is Ottawa’s leading member-based economic development corporation for fostering the advancement of the region’s globally competitive knowledge-based institutions and industries. 

The Institutional Limited Partners Association is a not-for-profit association committed to serving limited partner investors in the global private equity industry by providing a forum for: Facilitating value-added communication, Enhancing education in the asset class and Promoting research and standards in the private equity industry.

The Emerging Markets Private Equity Association (EMPEA) is an independent, member-based global industry association that promotes greater understanding of and a more favorable climate for private equity and venture capital investing in the emerging markets of Africa, Asia, Central/Eastern Europe and Russia, Latin America, and the Middle East.

Venture Capital Firms in Canada

http://www.chimkan.com/2009/04/20/venture-capital-firms-in-canada/

News about latest deals

http://www.canadavc.com/Default.aspx

Other Resources

British Columbia Venture Capital Programs - http://www.cse.gov.bc.ca/MIT/SBIIO/VCP/Pages/default.aspx

BDC Venture Capital - http://www.canadabusiness.ca/servlet/ContentServer?cid=1081944191273&pagename=CBSC_FE/display〈=en&c=Finance

Entrepreneur first - http://www.bdc.ca/en/home.htm

Strengthening Venture Capital in Canada - http://www.fin.gc.ca/toc/2003/svcc_-eng.asp

How Startups will save Venture Capital in Canada

Terms and Conditions for the Venture Capital Exemption - http://investcan.ic.gc.ca/en_terms.htm

Irish Venture Capital Association - A Guide to Venture Capital

I found a very interesting book about venture capital. It was written by the Irish Venture Capital Association (http://www.ivca.ie) and it’s completely free. 

It is a quick reading ( I read in less than 4 hours) and it explains what venture capital is and it shows some information about business plan and how to attract a VC.

Click here for a Guide to Venture Capital PDF