TIME TO SCALE UPJohn Ruffolo OMERS Ventures CEO

December 2016

WE DON’T HAVE A START-UP PROBLEM

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STAGE OF DEALS

Capital raising has been consistently strong since 2012

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Illustrative Start-up Financing Lifecycle

Breakeven

Valley of

Death

Friends &

Family

Up to $500K

Angels

$500K - $2MM

VC Round B

$10MM - $30MM

VC Round C

$30MM - $100MM

IPO

$100MM +

OMERS Ventures Target Stages

VC Round A

$2M - $10MM

Early Stage

Year 2

Later Stage

Years 3 - 6

Liquidity

Event

Year 7+

Seed

Financing

Year 1

Start-up

We need Canadian start-ups to be able to scale up…

Into globally competitive firms

That generate revenue

Employ thousands of Canadians

And contribute to our tax base, maintaining public

investments

HELPING CANADIAN INNOVATORS TO SCALE UP

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“Extraordinary value creation cannot occur without

growth, and entrepreneurial growth, post-start-up,

has numerous challenges which can be an order of

magnitude more difficult than simply starting a

venture.”

- (Daniel Isenberg, Babson College)

HOW DO WE GET THERE?

Let’s recognize – this will not be easy:

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A GOVERNMENT POLICY PLAYBOOK

ACCESS TO

CUSTOMERS

ACCESS TO

CAPITAL

ACCESS TO

TALENT

Standard Setting/Regulation

Intellectual Property / Copyright

Global Trade, Government, Large

Corporation Procurement

International Corporate Taxation

Attract Domestic,

International Educate,

Retrain Hire,

Compensate

Personal Taxation

SRED

Risk-based capital

Incubators,

Accelerators

Lifecycle of an

innovation-based company

$0 $10MM $100MM $1BB+

Score = 0

Score = 8 Score = 4

REVENUES

Government Scorecard

• Taxation of stock option

• Temporary Foreign Worker Visa

• Immigration

• Government Procurement

• SR&ED

• More coming …

PROGRESS THUS FAR

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• More scaled-up Canadian innovation firms

competing on world stage

• And a better developed, more scaled-up

ecosystem

• This will position us to be acquirers, rather than

always the acquiree.

WHAT DO WE NEED?

When it comes to innovation, we need:

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With collaboration and bold

action, we can scale up!

HOW CAN YOU BE A PART OF THIS?

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John RuffoloChief Executive Officer 416-369-3725 jruffolo@omersventures.com

OMERS Ventures200 Bay StSuite 1410, South TowerToronto, ON M5J 2J2

THANK YOU!

OMERS Ventures

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