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Issues Surrounding Venture Capital, Initial Public Offering (IPO) and Post-IPO Equity Financing for Canadian SMEs
PDF Version
(315 KB, 55 pages)
Prepared for:
Small Business Policy Branch
Industry Canada
Prepared by:
E. Wayne Clendenning & Associates
March, 2001
Table of Contents
Executive Summary
Introduction
The Nature and Significance of Equity Financing for SMEs
Section I – Venture Capital Equity Financing
Overview of the Venture Capital Markets in Canada and the U.S.
Issues Surrounding Venture Capital Equity Financing
Section II – Initial Public Offering (IPO) Equity Financing
Overview of IPO Markets in Canada and the U.S.
Issues Surrounding IPO Equity Financing
Section III – Selection of Advisors
Costs Factors
Specific Issues
Section IV – Post-IPO Equity Financing
Overview of Post-IPO Equity Financing
Regulatory Requirements
Size of Post-IPO Share Issues
Section V – Issues Surrounding Post-IPO Equity Financing
General Issues
Specific Issues
Conclusions
Appendix A – Statistical Overview of the Canadian Venture Capital Market
Appendix B – Statistical Overview of the U.S. Venture Capital Market
Bibliography
Introduction
The Nature and Significance of Equity Financing for SMEs
Section I – Venture Capital Equity Financing
Overview of the Venture Capital Markets in Canada and the U.S.
- Participants in the Markets
- Supply of Venture Capital
- Venture Capital Investment by Stage of Activity
- Sectoral Distribution of Venture Capital Investment
- Regional Distribution of Venture Capital Investment
Issues Surrounding Venture Capital Equity Financing
- General Issues: Access to Venture Capital
- Financial Costs of Venture Capital
- Time Costs of Venture Capital
- Specific Issues: Structure of the Venture Capital Market
- Canadian Market Structure
- Efficiency of the Canadian Market
- Syndication of Investments
- Support and Mentoring
- Behaviour of Venture Capitalists
- Investment Strategies
- Management Experience
- Suppliers of Funds
- Taxation
- Size of Investments
- Cross Border Flows
- Exit Strategies
Section II – Initial Public Offering (IPO) Equity Financing
Overview of IPO Markets in Canada and the U.S.
Issues Surrounding IPO Equity Financing
Section III – Selection of Advisors
Costs Factors
Specific Issues
- Regulatory Needs
- Issuing Costs
- Valuation and Pricing
- Time Costs
- Management Requirements
- Role of Institutional Investors
Section IV – Post-IPO Equity Financing
Overview of Post-IPO Equity Financing
Regulatory Requirements
Size of Post-IPO Share Issues
Section V – Issues Surrounding Post-IPO Equity Financing
General Issues
Specific Issues
Conclusions
Appendix A – Statistical Overview of the Canadian Venture Capital Market
Appendix B – Statistical Overview of the U.S. Venture Capital Market
Bibliography
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