by admin on October 14, 2010
Imagine going into a downtown Whole Foods and buying lettuce and herbs that were picked only hours earlier. And what if they were 100% pesticide free, took only a fraction of the water to grow, and didn’t pollute the environment by having to be trucked in from long distances?
A company in the UK has invented a technology that is making all this happen. Take a look at their first installation outside of London, England. My colleagues and I here in Vancouver are now well underway to commercializing this high-density urban growing technology across North America.
Brad Hill of PWC passed on some gloomy stats at last week’s Angel Forum.
Last year represented the lowest activity level for Canadian venture capital in over twenty years. BC was particularly quiet with VC investment of only $35 million in Q1/10, down from $45 million in Q1/09. Of all the VC investment in Canada, BC’s portion was only 13%. It is usually in the 15%-20% range.
On a positive note, the outlook for the balance of 2010 looks much better. According to Brad and Price Waterhouse Coopers, financing availability continues to improve and financial buyers have returned to the market with significant capital to deploy. Strategic buyers are actively seeking acquisitions but remain very selective. Companies seeking investment can expect to see a more extensive due diligence process. Also, valuation expectations on financing or exit need to be realistic as there is still a lot of economic uncertainty in the global market.
I spent today at the 27th Angel Forum in Vancouver. It was a well-attended event, though not as popular as some of the previous ones. At least that is what I overheard some regulars saying. As a first-timer, I thought it was a great event.
The main purpose of the forum is for investors to get quick introductions to young companies looking for venture capital. The companies vie for an opportunity to present; usually only one in four gets the nod. Today we heard from 18 companies–some hardware, some software, and a couple with consumer products.
The day opened up with a top-notch speech from BDC Venture Capital’s Kalle Radage. BDC seems to be financing a lot of tech projects these days.
Kelly ran through the main things you’ve got to have if you expect them to take you seriously. It is an excellent guide for all emerging companies looking for capital.
MUST-HAVES
- Strong management: a team to build the dream
- Serious competitive advantage: Will they buy it?
- Big market, big opportunity
- Sound business model: Do the numbers make sense?
- Reasonable valuation
- Clear exit strategy
NICE-TO-HAVES
- Protected IP
- Been-there, done-that management
