BC’s Venture Capital Corporations (“VCC”)…
In 1997 BC introduced the Venture Capital program which encourages investments in 5 qualifying activities:
- Manufacturing, processing or export of value-added goods produced in British Columbia;
- Destination tourism;
- Research and development of proprietary technology;
- Development of interactive digital new media product;
- Community diversification outside of the Lower Mainland and the Capital Region.
Companies that are seeking investors and considering taking advantage of this program generally require guidance in terms of structuring. What’s more they typically need assistance in packaging their business – and their strategic plan – to appeal to a restricted group of local, BC-based angel investors.
2 Investment Models
- Venture Capital Corporation
- Eligible Business Corporation
For the most part groups of angel investors can invest through their own Venture Capital Corporation (“VCC”) into an eligible business. To facilitate investments by so-called “friends and family” companies can register as an eligible business corporation (“EBC”).
Typically companies should avoid registering as an EBC until they have identified the investors, and can make sure that the structuring works to suit the needs of their investors.