Access to Capital

Equity Investing

John Coutris B.Comm(Hons.)

CEO, MEDF Inc.

“Investment is putting out money to be sure of getting more money back later at an appropriate rate.”

Warren Buffett

2017 Net worth of Warren Buffett according to Forbes is $76.1 billion USD

WHAT SPECIFICALLY IS EQUITY INVESTING?

Generally refers to the buying and holding of shares of stock by individuals and firms in anticipation of income from dividends and capital gains. Source: https://en.wikipedia.org

WHO PROVIDES EQUITY FINANCING?

1.  Institutional Investor is a term for entities which pool money to purchase securities, real property, and other investment assets or originate loans.

•  Include banks, insurance companies,

pensions, hedge funds, REITs, investment advisors, endowments, and mutual funds.

Source: https://en.wikipedia.org

WHO PROVIDES EQUITY FINANCING?

2. Private Investors (Angel Investors) are wealthy, entrepreneurial individuals who provide capital in return for a proportion of the company equity. They take a high personal risk in the expectation of owning part of a growing and successful business. Source: http://www.investopedia.com/articles/basics/11/investing-in-private-companies.asp#ixzz4b26TAhrH

WHO PROVIDES EQUITY FINANCING?

3. Venture Capital: investing where a group of more savvy investors comes along and offers growth capital and managerial know-how and other operational assistance. At this stage a firm is seen to have at least some long-term potential. Source: http://www.investopedia.com/articles/basics/11/investing-in-private-companies.asp#ixzz4b26TAhrH

COMMON TYPES OF CAPITAL FINANCING

1.  Debt Financing 2.  Vendor Financing 3.  Equity Financing

EQUITY FINANCING

EQUITY FINANCING

TOP 10 START-UP MISTAKES

#1 36% Building something nobody wants #2 18% Hiring Poorly #3 13% Lack of Focus #4 12% Fail to execute Sales & Marketing #5 7.9% Not having the right co- founders #6 5.4% Chasing investors, not customers #7 3.3% Not making sure you have enough money #8 2.1% Spending too much money #9 1.4% Failing to ask for help #10 0.7% Ignoring social media Source: www.100FirstHits.com

Start-Up Business Failures

MEDF will expand the participation of the Metis

people in Manitoba

by stimulating

and advancing economic development

activities

MEDF ELIGIBILITY REQUIREMENTS?

•  Metis heritage confirmed by genealogy and/or MMF membership card.

•  Business owned and controlled by Metis individual(s).

•  Incorporated business and headquartered in Manitoba.

•  Manitoba residency

VOYAGEUR INTERNET Voyageur Internet is an Internet Service Provider

specializing in providing high-speed internet access to communities, by delivering high

capacity connections.

VOYAGEUR INTERNET

INVESTMENT CRITERIA?

1.  Have an experienced, well-balanced management team.

2.  Submit a comprehensive business plan showing growth potential and exit strategy.

3.  Be economically viable (market validation) providing a positive return on investment to the Metis entrepreneurs, community, and MEDF

1. MANAGEMENT TEAM

MANAGEMENT

EMPLOYEES

1. MANAGEMENT TEAM

•  Create the culture of the firm •  Have passion, energy, vision and conviction •  Responding positively to challenges •  Learning from mistakes •  Taking personal initiative •  Great perseverance

Source: Study of 21 Babson University Academy of Distinguished Entrepreneurs inductees

•  Typical Age: None o  Ingvar Kamprad – Started IKEA at age 18 o  Michael Dell – Founded Dell Computers at age 19 o  Jerry Yang – Founded Yahoo! at age 26 o  Estee Lauder – Started her cosmetics firm at age 40 o  Steven Spielberg – Founded DreamWorks at age 48 o  Harland Sanders – Started KFC at age 62 Source: Study of 21 Babson University Academy of Distinguished Entrepreneurs inductees

1. MANAGEMENT TEAM

2. A written summary of an entrepreneur’s proposed business venture, its operational and financial details, its marketing opportunities and strategy, and its managers’ skills and abilities.

Source: Essentials of Entrepreneurship and Small Business Management (Zimmerer and Scarborough)

3. MARKET VALIDATION

Market validation is a series of interviews of people in your target market. These interviews are used to test a product concept against a potential target market. A market validation should always be done before introducing a product and before spending a significant amount of money. Source: VentureChoice.com

3. MARKET VALIDATION

SECURITY GLASS

Security Glass provides glass and custom glass (tempered glass, glazing, sealed units) for

residential and commercial uses. In addition, SG provides installation services for windows,

doors, and other specialty applications.

SECURITY GLASS

MEDF BACKGROUND

•  Metis Economic Development Strategy •  MEDF was Incorporated June 11 2011 by the

Manitoba Metis Federation and the Province of Manitoba

•  Fund activities launched September 2012 at the MMF Annual General Assembly

•  ~ 4 ½ years operating the Fund

THE MEDF PROGRAM •  MEDF provides equity and/or debt financing up

to $500,000 in capital to Manitoba Metis entrepreneurs supporting business for: Purchasing a business, Growth & Expansion, Merger & Acquisitions, and Start-Up.

•  Equity investment in the form of: common and preferred shares, convertible shares & debentures, derivatives such as put and call options, and/or other as agreed to by MEDF.

THE MEDF PROGRAM •  MEDF is a short-term partner. Our risk capital

is here to finance a business venture and exit ideally within 3-7 years.

•  MEDF will assume a minority partnership. Our maximum ownership is 35% per business.

•  Exit strategy to be discussed at time of investment with a shareholders agreement outlining shareholder options.

THE MEDF 10

STEP PROCESS

PARTNERSHIPS •  Louis Riel Capital Corporation (LRCC) has

since inception been a huge part to MEDF success while also being the most valued partner --- thank you.

Helping Metis Business Succeed!

MEDF PROGRAM

Helping Metis Business Succeed!

THANK YOU!