What you need to know
Venture capital is an investment in a young company with strong growth potential. A transaction of this nature involves a high level of risk for investors, although it is offset by a greater opportunity for financial gain.
VC investors are more than a source of money: they also let entrepreneurs tap into their network and experience.
The average life of a VC fund is seven to ten years. This inevitably has an impact on the firm’s investment decisions.
Espace CDPQ’s investment partners
Espace CDPQ’s investment partners cover the various funding stages and a specific range of industries. Their diverse, complementary expertise includes financing, growth and international expansion. Some prefer to invest at the seed level, whereas others tend to focus on startup and growth.
Stages of VC funding
Seed capital: Seed capital meets the first funding needs of a technology or science venture. It frequently goes toward research or development of an initial concept. This is known as a company’s “ideation” stage.
Startup (Series A): The startup phase marks the beginning of the company’s operations. Funding is used to develop products or to validate and enhance technology and make it market-ready.
Post-startup (Series B): At the post-startup phase, the company has completed product development, thus considerably reducing the level of risk associated with the technology. However, it has yet to generate significant profits, so the business risk remains high.
Growth and expansion (Series C and D): At this stage, the company has a viable product and confirmed clients. Revenue growth is steady and the business is turning a profit. Incoming capital is often leveraged to increase production and sales capacity, roll out new products, expand to new markets or make acquisitions.
Funding applications are evaluated based on a number of criteria, which vary from one VC firm to another, as does the investment process itself. Generally speaking, VCs invest in technology and science companies with a high potential for growth. Among the elements that are carefully analyzed are:
- Management team quality
- Technology platform and innovation
- Product uniqueness and likelihood of fast, sustainable market penetration
- Growth potential
Tell us about yourself
Espace CDPQ is pleased to facilitate the application process and forward promising files to investment partners, chosen based on applicants’ funding needs and sector of activity.
We would love to hear more about you and your business. Please email your corporate presentation to [email protected] with the following details:
- Your company (one-sentence description, Website, number of employees, the sector you operate in, average annual revenue, location of your offices)
- Competitive advantage of your product/service
- Current and prospective markets
- Current and prospective clients
- Funding stage and amount ($) sought
- Growth-related projects to be funded by the investment
- Previous funding rounds (dates, amounts, names of lenders/investors)