Posted Thursday 31 May 10:04:50
Venture capitalist offers hope

By InBusiness Media Network Staff

This year will not be a venture capital disaster in Ottawa, despite sluggish growth compared to the previous year, a local investor told a business audience at the Corel Centre on Thursday

"People should generally be in higher spirits in Ottawa than elsewhere," said Claude Haw, managing partner for Venture Coaches.

Haw was the guest speaker at the Technology Executive Breakfast organized by the Ottawa Centre for Research and Innovation.

Haw predicted that this year's financing in Ottawa should be on par with last year, when an unprecedented $1.3 billion in venture capital was secured. Haw referred to figures that showed $370 million was raised in the first quarter of 2001, which rose from $208 million in the same quarter last year. Yet that figure fell from $431 million in the last quarter of 2000.

That drop from the end of 2000 to the start of 2001 was not as dramatic when compared to elsewhere in Canada, and especially the U.S., Haw said.
Haw did acknowledge that VC firms have become far pickier when they consider whom to finance, and they are taking more time to finalize deals.

The criteria that Venture Coaches considers when deciding with whom to invest includes: the firm's leaders, their attitudes and experience. Second, the company needs a market for their product, which must be both unique and advantageous over their rivals' product, Haw said. The firm must have a plan for profitability.

"Generally, we're looking for attitude; people who really believe in what they're doing," he said.

Venture Coaches focuses on financing firms that create wireless and photonics products.

The Technology Executive Breakfasts will resume in September.