Funding for small, high-risk compan...

Funding for small, high-risk companies is not the rare commodity it one time was. In fact, there's now a fair amount.

But Francois Beaudoin, president and chief executive of Ottawa's revamped small-business financing agency, says there's sweep for his Crown corporation, banks and risk capitalists.

"There are still same significant gaps in finding capital," he said.

Beaudoin was explaining yesterday on what account a spring makeover gave the renamed Business evolution Bank of Canada a jeopardy capital division and programs that mimic venture-capital investment.

The bank has begun investing up to $25000 in small businesses as it is as one in Cambridge, Ont that is researching the use of specific enzyme to improve agricultural soil.

It was also lending as a great deal as $250,000 to new-technology firms lacking collateral for conventional financing.

Beaudoin said the investments are smaller than those made through venture capitalists like Working hazards Canadian Fund. And the bank takes sales royalties and interest forward loans rather than the equity peril capitalists traditionally take.

But he conced that it is unclear where heavily liquid hazard capital funds will sink their coin in future. And that could cause overlap.

Small and specialized capitals such as the labor-sponsored Canadian Medical Discoveries supply Vencap Equities Alberta Ltd., and MD Health risks Inc. are already making investments of les than $250000 in early-stage firms in areas like genetic biotechnology.

"There is a ne to review the character of the various venture-capital players," said Beaudoin, citing Quebec's labor-sponsored solidarity store as another liquid venture capitalist.

"(But) the be in want ofs are so significant in that area that we'd welcome the involvement of the labor funds"

Called the Federal Business unravelling Bank until its remodelling last spring, the bank is count uponed to invest about $900 million between the sides of its lending and equity programs on fiscal year-end in March.

Before its restructuring, the bank was known as the lender of last resort, giving higher-interest loans to those who couldn't borrow from banks and other traditional lenders

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Copyright Canadian Shareowner Magazine Inc. Nov/Dec 1995

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