In keeping with Working Opportunity's mandate, the Employee Investment Act states that investment activity must avoid resource exploration and extraction, the financial sector, real estate, land development and retail outlets. Instead, the fund is encouraged to assist smaller concerns in sectors that bring increased diversity and value-added to the provincial economy through new goods and services, innovation and exports, such as manufacturing, high technology and tourism. In short, the fund is given explicit parameters as a financial agent of economic change in British Columbia.
The fund must also observe a statutory schedule whereby 80 percent of the capital it accumulates each year is placed in eligible investments within thirty-six months of that year's end. Working Opportunity is subject to more performance measures than most labour-sponsored funds, such as an investment protection account that links the use of tax credits with eligible disbursements.
In keeping with its legislative framework and private mandate, Working Opportunity has determined the following criteria for investment purposes:
Like other venture capital institutions, Working Opportunity conducts an exhaustive process of due diligence whereby it considers all aspects of a potential investee company's attributes and prospects in the market. Along with examining business plans and financial data, the investment team interviews firm owners/managers, workers and other interested parties (e.g., suppliers). Questions emerging from this evaluation contribute to subsequent negotiations and, possibly, terms and conditions to be included in a final investment agreement.
In general, Working Opportunity concludes (after also finishing its social audit, et al — see below) with an equity infusion of between 20-40 percent and representation on the board of directors. Fund officers anticipate it will usually look to exit an investment within a four to eight year timeframe.