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Five MaRS Clients Participate In New VentureStart Program

Government of Canada [1]Earlier this morning, The Honourable Gary Goodyear, Minister of State for theĀ Federal Economic Development Agency for Southern Ontario [2] (FedDev Ontario), announced the Federal Government’s contribution of up to $4,999,575 for the Research Innovation Commercialization Centre [3] that will provide graduates in the fields of science, technology, engineering and math (STEM) with the skills and support they need to start their own businesses.

Following the FedDev announcement, MaRS [4] revealed that five of its clients have been chosen to participate in VentureStart [5], the new program unveiled today by the Mississauga-based Research Innovation Commercialization (RIC) Centre and MaRS, and supported in part by the FedDev Ontario funding. Designed to enhance the success rate of technology startups in Southern Ontario by providing targeted training and education, VentureStart also provides entrepreneurs with the opportunity to secure matching seed financing of up to $30,000 to launch their new venture.

Earlier this morning, The Honourable Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario [2] (FedDev Ontario), announced the Federal Government’s contribution of up to $4,999,575 for the Research Innovation Commercialization Centre that will provide graduates in the fields of science, technology, engineering and math (STEM) with the skills and support they need to start their own businesses.

“How do we improve lives, create jobs and economic growth? Innovation. Our government recognizes the importance of investing in the ideas of graduates and providing them with the skills necessary to become innovators and successful entrepreneurs,” said Minister Goodyear. “Because innovation is about finding a solution to a problem, taking that idea and bringing it to market and getting it adopted by customers. With this funding, the Research Innovation Commercialization Centre will provide mentoring and financial support for 160 innovative new start-up businesses in southern Ontario, which will create jobs and growth for our people and our communities.”

Through the FedDev Ontario funding, along with support from the Canadian Innovation Centre [6] (CIC) and a consortium of other non-profit Regional Innovation Centres including MaRS, the program is geared to train as many as 450 entrepreneurs over 15 months, and provide as much as $4 million in seed financing to qualified applicants.

“We’re delighted to partner with the RIC Centre on their VentureStart program, as it will complement the work that we are already doing through our educational programs and advisory services,” said Keri Damen, Director of Entrepreneurship Education at MaRS. “Funding is a challenge for emerging entrepreneurs and this program will help fill that gap.”

The MaRS clients chosen to participate in the program produce a range of technology applications:

The VentureStart program works on an “equal contribution” basis, where entrepreneurs contribute toward the total cost of the education phase of the program (matched by FedDev through VentureStart) and 50 per cent of the seed financing for the product development phase, up to a maximum of $30,000 in matching funds.

“RIC Centre is excited to be providing the VentureStart program,” said Pam Banks, Executive Director, RIC Centre. “It adds another dimension to our services in helping emerging entrepreneurs shorten the path to market success.”

For entrepreneurs who successfully complete the education phase, the Entrepreneurs in Residence (EIRs) at MaRS and partner organizations in the Ontario Network of Excellence (ONE) will provide mentoring, along with the key support services that are typically required for the successful launch and operation of a new business.

To qualify for seed financing, entrepreneurs must complete the education phase, which provides the foundation for creating a business development plan for their new venture. They must also participate in a full Critical Factor Assessment (CFA) conducted by an EIR at the partner RIC and the Canadian Innovation Centre. The CFA evaluates their plan against 42 factors that have been identified as critical for venture success and identifies flaws to be addressed in order to provide the venture the best likelihood of succeeding.

To be eligible for the VentureStart program, entrepreneurs must be university or college graduates of a science, technology, engineering or mathematics program, and must reside in southern Ontario.

The program comprises two phases, a Business Skills Development phase and a Business Launch Support phase. Since RIC Centre covers half the cost of the $3,400 skills development training phase, the enrollment cost for eligible entrepreneurs is only $1,700. There are no other costs for the entrepreneur to continue in the program, other than the requirement of matching funds for any seed financing ultimately received, up to a maximum of $30,000.