In 2017, the federal government’s Advisory Council on Economic Growth published a report entitled Unlocking Innovation to Drive Scale and Growth. The report identified several sectors in which Canada has the opportunity to take a leading role in the world’s economy. The report also identified gaps or potential barriers to those achievements.
Two notable barriers were:
- A gap between invention and revenue-generating commercialization.
- The inability of many Canadian start-ups to scale up their businesses.
These barriers are often the result of insufficient growth capital and/or insufficient executive talent who can bring a Canadian business to the next level. And that is where the Canadian Business Growth Fund comes in.
What is the Canadian Business Growth Fund?
The Canadian Business Growth Fund is a means for Canadian businesses to obtain the capital they need through minority partnership investment. It is not a loan, so entrepreneurs do not have to worry about incurring debt. It is selling a minority ownership in their business that allows entrepreneurs access to capital while allowing them to retain control of their company. In addition to capital, however, entrepreneurs also receive valuable advice and are opened up to a broader array of industry experts through CBGF’s network, who can help them scale up their businesses and take them to the next level.
From innovation to commercialization
Canada has some wonderful universities and other institutions where innovation, research and development can thrive. Where this innovation often falls short, however, is in bringing it from the development stage to the stage where it can be commercialized and earn a profit.
Canadian businesses looking to bring new innovation to the market may need to make considerable investments in marketing or other expenses to make a new innovation appealing to consumers and to become profitable.
Scaling up a business
Where your business is looking to introduce new and innovative products and services to its offerings, expand into new geographic regions, or even acquire other businesses, it will take capital – much of which will be put to work before the company can begin to reap the rewards of its expansion.
Introducing new technology to market or scaling up an existing business takes considerable capital. Entrepreneurs who are flush with cash may be able to bootstrap (self-fund) their business; however, this option is not practical or feasible for most.
The other options are to get a business loan or to seek out investors who are willing to invest in your company in exchange for a portion of ownership in your company – as either a minority or majority partner.
For entrepreneurs wishing to retain control of their company, finding a minority partner who shares their vision and trusts them with the day-to-day operations of the company is ideal. This is exactly what the Canadian Business Growth Fund offers.
Contact CBGF today
If you are interested in learning more about bringing on a minority partner so that you can access the capital you need to scale up your business, then contact us today.