Fundraising and boot-strapping

This case study exemplifies fundraising considerations as an early stage start-up.

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Common Problem

Many geniuses struggle to bring their ideas into fruition. They have ingenuity, passion, drive. But often they lack the discipline to move from the idea stage through implementation. Even if they are good at implementing, they may work on the most energizing component rather than the most important. This energy to invent creative solutions needs to be harnessed and focused.

Building to a solution

When I was brought on to help the founder develop their business, they had an invention they had been working on for a couple of years. A former engineer and sales professional, the founder was great at making connections and generating excitement about the concept. But what was missing was discipline to engineer a working model, and funding to take the project to the next step.

Over 12 months, I worked with him on many different facets of the business. This case study focuses on the aspects that enabled access to funding opportunities:

1. Business plan development and pitch decks, aimed at government grants, loans, and Angel Investors;
2. Project planning and proposal documents for potential project and academic partners;
3. Work tracking system; and
4. Building an advisor network.

Results

While the company has since gone into hibernation, we were able to start and complete a lot in 12 months to progress funding opportunities:

• Advanced application for NRCAN Clean Growth Program, through preliminary screening to letter-of-intent stage;
• Submitted application to Western Economic Diversification Canada (WD), WINN Initiative intake program;
• Awarded funding from NRC, valued at >$17,000 for salary supplement through the Youth Employment Program;
• Established joint-research project with University of Victoria;
• Successful audit by Canadian Scientific Research and Experimental Development (SR&ED), awarding 15 to 35% tax credit incentives;
• Established relationships and kicked-off project feasibility with two partners for demo site testing;
• Instated two engineering design advisors, for power take off and mechanical design; and
• Entered 4+ pitching events (eg. Keiretsu Forum, Angel Forum, Foresight, VANTEC).

How we did it

When the founder brought me onboard, he had three main objectives in-flight. (1) Securing protection of his intellectual property, (2) marketing strategy for an upcoming conference, and (3) setting up NRC IRAP advisory services. The company had also recently wrapped up a study for the product design, with the University of Victoria. I knew going from here, to funding a manufacturing-based start-up in one year, was going to be a challenge.

We first worked with a business coach to brainstorm and build out a business plan. The documents that came out of those exercises framed the founder’s vision for the company. They made conversations with potential investors, partners, and customers easier and more reputable. This business plan documentation now formed the foundation for pitches, applications, and project plans.

I then researched fundraising opportunities through various government bodies, loans, grants, and calls for projects offering small (under $1M) investment. Filing this information in a consistent format and in one place, allowed the founder to easily vet whether or not to pursue the opportunity. This lead to applications, pitching forums, and networking with other start-up founders, investors, and industry professionals. The advice they all provided was similar across the board, and encouraged the plans I had helped the founder put in place.

In addition to the fundraising-related relationship development, I also assisted the founder find and attract technical expertise. This was done through (predominantly free) networking events, leveraging our networks, and reaching out to academic and industry experts.

I created systems that enabled easy access to information. This included a virtual filing system, a timesheet/task tracking system, and compilation lists of potential partners and customers. For documents, I also established memo, proposal, and report templates for the company to be used on-going.

When I first started working with this company, many of the people I spoke to about the concept were skeptical. But as we better organized the founder’s ideas, more and more people we interacted with were galvanized by the founder’s vision to provide clean renewable energy. My skills in project management, organization, and general problem solving enabled me to fill the operational gaps the business needed to evolve.

Does this problem sound familiar?

Are you trying to start a business? Is access to capital a main concern? I hope this case study provides you with some useful ideas to approach the challenges you’re facing. 

If you’re not sure what to do next, let’s chat. Email me for a 30-min consultation and I’ll see what I can do to help.