What types of companies does the Accelerate Fund consider funding?
- Incorporated, private technology startup companies with a head office and more than 50% of employees located in Alberta.
- Product-based companies with proprietary technology/process and/or patents (awarded or filed).
- Companies in a technology sector including but not limited to information and communications technology, clean and energy technology, as well as life sciences, including agriculture and biotech.
- Companies who have committed investors to co-invest with Accelerate Fund.
- Companies (that have a confirmed angel investor) or their angel investors may submit a pitch form to the Accelerate Fund.
What types of companies are NOT eligible for the Accelerate Fund?
- Non-technology companies.
- Non-Alberta based companies.
- Entrepreneurial concepts, research and/or development projects.
- Service or consulting businesses, unless services are delivered by a proprietary technology.
- Unincorporated companies including sole proprietorships and partnerships.
What is an optimal Accelerate financing situation?
- The Accelerate Fund will always seek to maximize the leverage of its capital and to bring in multiple angels to the financing. For example, an ideal situation might involve a company that has three angels investing $200,000 each, but has a need for an additional $200,000. The Accelerate Fund could provide the additional $200,000 thus seeing leverage of four times its investment.
What type of financing is eligible for co-investment by the Accelerate Fund?
- Equity financing rounds with super angels and individual angel investors.
- Investment from angel groups and/or family funds.
- Convertible debt.
- The angel round under consideration may include investment of up to 50% from the company management (also included, friends and family of the management).
What financing is NOT eligible for the Accelerate Fund?
Keep in mind that if the financing round includes angel investment, the angel investment is
- Investments from Venture Capital and Private Equity Funds.
- Government funding (from any level of government) including grants, vouchers, IRAP, SR&ED, and SDTC.
- Fees for third party consultants, agencies, business plan writers and service providers cannot be paid for with the Accelerate Fund capital.
- Debt financing.
What if I’ve already negotiated specific terms with my angel investors?
- Some deals will be completed on the same terms and conditions as proposed. However, all proposed terms will be subject to review. For example, if the valuation or term sheet is drafted in such a way that it may limit future investment, a revision may be negotiated. Some additional terms of investment may also be developed.
Should we apply if we have not yet drafted a term sheet?
- You are welcome to apply with or without a term sheet. If you apply with a term sheet, please remember that the fund manager may require changes to your terms. If you do not have a term sheet, the fund manager will assist in drafting one.
Can I reopen a recently closed round of financing for an Accelerate Fund application?
- If you close a round of financing with angel investors, it will still be open to consideration by the Accelerate Fund for an additional 90 days. However, once again please remember that the fund manager may require changes to your terms.