Venture-capital program profiting entrepreneurs

Hey there, time traveller!
This article was published 22/03/2011 (5317 days ago), so information in it may no longer be current.

EVEN though venture-capital funding is hard to come by in Manitoba, there’s still an active business-development network in the province.

One of the key elements of that network is the Manitoba Venture Challenge. The idea is to educate entrepreneurs with companies in various stages of development so they better understand the ins and outs of tapping a variety of funding sources.

The deadline for applications for this year’s venture challenge is Thursday (forms are available online at http://www.manitobaventurechallenge.ca).The program is free of charge for participants.

Distinct programs lasting one to three days are available in three streams. Stream 1 is early-stage concept validation in turning an idea into a product.Stream 2 is a launch pad for companies looking for forgivable loans or debt financing prior to seeking equity. Stream 3 is business accelerator financing for companies who already have their first round of financing in hand and are trying to grow.

Last year, Canadian Prairie Garden Puree Products Inc. won third-place honours in Stream 3. The company is on the verge of starting commercial production of its premium fresh-vegetable puree.

Kelly Beaulieu, president and co-owner of the company, said the Portage la Prairie operation just needs to make some minor modifications to its equipment to meet U.S. regulatory standards.

“I think the venture challenge is a magnificent experience for any business to get into,” she said.

Canadian Prairie Garden Puree Products Inc. has already secured well over $1 million in financing, but Beaulieu and partners have other ideas down the road that will need investment.

“We went to the venture challenge looking to the future,” she said. “We needed to understand how to talk to venture capitalists and get a better understanding of how our business pitches should look.”

The program is supported by the province and several private-sector organizations, including RBC and Deloitte and Touche. In addition to cash prizes of $2,500 to $10,000 for the top three companies in Stream 3, they also win a trip to the Banff Venture Forum.

Rob Warren, director of the Stu Clark Centre for Entrepreneurship at the U of M’s Asper School of Business, is the driving force behind the program.

He said while the province may not be awash in venture capital looking for a home in Manitoba, the venture challenge is an excellent way to build up the stock of solid, home-grown businesses.

“The program does not cost anything for the companies that participate,” he said. “It’s a great way to help companies get to the point where they know what investors will be looking for.”

martin.cash@freepress.mb.ca

Manitoba Venture

Challenge 2011

Participants in each stream benefit from input from a range of experienced players, from government funding agencies to entrepreneurs and angel investors. The program is not open to restaurants, bars and resourceexploration businesses.

Stream 1 — Idea to Product: Allows entrepreneurs to have their business ideas reviewed in a one-day session by business experts and gain advice on how to proceed.

Stream 2 — Launch Pad: For entrepreneurs who are at the startup stage and are looking for external financing from lenders or government sources. A two-day training session describes financing options and businessplan preparation.

Stream 3 — Business Accelerator Financing: Enrolment is limited and open to entrepreneurs who have raised $200,000 in external financing and seek additional money to grow. Participants take part in an intense three-day boot camp and an “elevator pitch” competition with cash prizes for the three best.