Shareholder recruitment efforts of Working Ventures must conform to rules and regulations administered by securities commissions in each province.
Among the wealth of legal strictures made of Working Ventures by the federal and provincial governments are requirements concerning the timing and level of investment. Ottawa requires that the fund place 60 percent of its assets at each year's end in eligible transactions for the forthcoming year. Ontario, by contrast, requires that 70 percent of annual capital raised invested in provincial projects within two years. The fund has similar requirements in other provinces. As a consequence, Working Ventures follows a very specific agenda for matching new capital with additional investments.
Under the federal statute, Working Ventures has latitude to invest in small and medium- sized enterprises in industries and sectors of all kinds and has no control boundaries. Such provisions may, or may not, be reflected in provincial legislation.
In accordance with legislative requirements and its private mandate, Working Ventures has criteria framing its investment decisions. Key illustrations include:
Like other venture capital institutions, Working Ventures conducts an exhaustive process of due diligence whereby it examines all aspects of a potential investee company's attributes and prospects in the market. Along with considering business plans and financial data, the investment team interviews firm owners/managers, workers and other interested parties (e.g., suppliers). Concerns arising from this assessment contribute to subsequent negotiations and, possibly, terms and conditions to be included in a final investment agreement.
Typically, Working Ventures follows with an equity infusion giving it a minority position generally of between 10-50 percent and board representation. Fund officers will look to exit an investment after four to seven years.