Investing in Promise: From Start-Up Companies to Sustainable Enterprises
Context and the Neotech Advantage:
Neotech is a business incubator – an innovation hatchery – based in Montreal. Established in 2003, Neotech assists high-potential start-up companies in the early stages of their businesses to grow into sustainable enterprises. Neotech is financed by business angels who want to give back to Montreal entrepreneurs and be part of a family of companies managed inside a structured incubator environment.
According to a recent study on business incubators, 70% of start-up companies that grew inside an incubator remained in business after 5 years, compared to the less than 50% that grew outside. In another study on nearly 550 angel investors, the average return on investment made by angels in groups was 2.6 times the investment in 3 to 5 years. With these studies in mind, Neotech combines the best of both worlds, bringing angel investors together, inside the incubator, to support start-up companies as they grow into sustainable, profitable companies with a unique “Start-up to Scale” approach.
Unsure about best practices and strategy, small, rapidly growing businesses typically exhaust capital resources as they grow and expand. Overhead is high and the cost of business becomes too great to remain in business. Traditionally, these start-ups find it incredibly difficult to finance their companies from banks due to the perceived or actual risks involved. Venture capitalist funds become an option but are usually only available to more established businesses seeking larger investments. Entrepreneurs have therefore been dependant on their own savings, financial support from family and friends or private investors – the business angels like those at Neotech.
Although well-known for its technology development and innovations, Montreal has long-since lagged in its ability to produce highly-profitable, competitive businesses. There is limited training and support available to Montreal technology entrepreneurs, a lack of entrepreneurial tradition or spirit and low levels of business angel activity in the region.
Growing new business is the foundation of future economic prosperity. It is important to encourage entrepreneurial activity by providing the best conditions to start-ups, including best-practice incubator environments. Entrepreneurs need access to properly managed seed capital, as well as organized management and structure like that which Neotech provides to business start-ups.
Neotech Offers Business Angels Significant Advantages:
- DEAL FLOW: Neotech receives a regular influx of applications from businesses seeking funding from private investors with matching interests. There are also existing portfolio companies that would benefit from additional funding. We have the Deal Flow available to start working with your investment quickly and securely.
QUALITY: Neotech looks toward pioneering market revolutions that will lead to sustainable competitive business models. Neotech is an early identifier of innovative, disruptive technologies and looks to competitive and market analysis and tests before significant investments are made. In this way, we further secure and ensure substantial return on investments.
TIME FRAME: Neotech provides for investment distribution across the growing portfolio of quality companies. This process shortens the length of time for return on investment and removes the time-consuming elements from finding and making investments.
INVESTMENT PROCEDURE: Neotech maintains a well-developed set of documents designed to protect the interests of all shareholders, including new investors. These come to each investment with no charge. Neotech takes an active role in managing the completion process to save you time and costs when making an investment.
LEVERAGING EXPERIENCE: Neotech welcomes investors’ experience and expertise. When investors wish to act as a non-executive director or mentor to a portfolio company, they may do so with minimal interference from Neotech.
BRIDGING GAPS IN TIME: Investors often do not have sufficient time to manage or monitor all of their own angel investments. Neotech is experienced in helping angels bridge that gap.
If you are interested in learning more or are interested in investing small amounts into a diverse portfolio of small businesses incubated to accelerate their growth and go-to-market, Neotech may be the opportunity for you.
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