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Is Start-up Funding in Ontario Broken?Graham-45X64.jpg
Posted by Ian Graham

This post was inspired by a post I read on StartupNorth regarding: BrightSpark: Venture Capital is not what it used to be, we are changing. I refer readers to this post that is a summary of the issues in Ottawa called Darwin and the status quo. I tend to agree with the sentiment expressed in Jevon's post and Heri's comment. The nature of funding technology companies in Canada needs a significant overhaul, I have been blogging about the situation in Ottawa for just over a year and read similar stories to this post in many Canadian start-up blogs. The funding model needs to change. The challenge for the old school VC model is that a deal of $500k requires just as much due diligence as a Series A or B round of $5M to $10M which carries a bigger payload with less risk. Few dare to tread in the pre-seed space of under $500k which is the type of payload most early stage software start-ups are looking for and could use effectively. VC are not the right people to be funding early stage (seed or pre-seed) start-ups based on their expectations and structure. Click here to read more of Ian's blog.

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