Do I need venture capital to build a company?
No. Many businesses never raise venture capital. Grants, tax credits, customer revenue, loans, community or crowdfunding raises and angel investment can all fund a company. Venture capital suits businesses that can grow very large, very fast, and it comes with expectations about growth and an eventual exit.
What non-dilutive funding exists in Canada?
Common sources include the SR&ED tax incentive, NRC IRAP, regional development agency programs, provincial innovation programs and small business loans such as the Canada Small Business Financing Program. The funding directory lists programs with a verification flag and links to the official page. Intake dates and terms change, so always confirm on the official page.
How much money should I raise?
Raise enough to reach the next milestone that makes the business materially less risky, plus a buffer, commonly 18 to 24 months of runway. Use the runway calculator and the dilution simulator to test the effect on ownership.
What is the difference between a SAFE and a convertible note?
Both let an investor put money in now and receive shares at a later priced round. A convertible note is a loan with interest and a maturity date; a SAFE is not debt and has no interest or maturity. Terms such as the valuation cap and discount drive the outcome. Get legal advice on which fits your situation.
Can I sell shares to the public or raise through crowdfunding?
Selling securities is regulated. In Canada you generally need to use a prospectus exemption such as start-up crowdfunding, the offering memorandum exemption, the family, friends and business associates exemption or the accredited investor exemption. The alternative funding guide summarizes the published rules, and a securities lawyer should confirm what applies to you.
Do I need to incorporate before raising money?
Almost always. Investors buy shares in a company, and most programs fund incorporated businesses. The guide on building a share company explains choices such as federal or provincial incorporation and share classes.
Should I raise from Canadian or US investors?
Both can be right. US investors write larger cheques and have deep sector knowledge; Canadian investors and programs understand local incentives. Some US investors prefer to invest in US-incorporated companies, so get cross-border legal and tax advice before restructuring.
How does the investor finder work?
You paste a description of your project or upload a file. In your browser, the finder detects your sector and stage and compares them with each investor’s published focus, then ranks the list and lets you download it as a Word document. Your text is not sent to this site’s server.
Does a high rank mean an investor wants to invest in me?
No. The rank is an estimate of fit based on published focus areas. It does not mean an investor has seen or expressed interest in your project. Read each firm’s own pitch instructions before reaching out.
How accurate is the information, and how often is it updated?
Each program, investor and source has a status: verified, partly verified or unverified, and the date it was checked. Terms and intake windows change often. The methodology page explains the process, and you can report a correction.
Is this legal, tax or investment advice?
No. It is general information to help you prepare. Speak with a lawyer, accountant or other qualified advisor before making decisions.
What documents will investors ask for first?
Usually a short summary or deck, then financials, the cap table, key contracts and proof of traction. The due diligence checklist lists what to prepare.
What is a good LTV to CAC ratio?
Many investors cite 3 to 1 or better and a payback period under 12 to 18 months as rules of thumb, but the right numbers depend on your sector and stage. Try the unit economics calculator.
Can I use these tools if my business is not cleantech or waste?
Yes. The site covers software, health, consumer, industrial, services, food, real estate and climate businesses, and the investor finder detects more than 30 sectors.
Still stuck? Contact us.