Economic Development Strategy

The Entrepreneurial Foundation of Saskatchewan

& Saskatchewan Entrepreneurial Fund

2

Economic Development

The process by which public, business and non-governmental sector partners work collectively to create better conditions for economic growth and employment generation.

3

Central’s Economic Development Philosophy

Private Sector Driven• Mobilize private sector • Support from public sector partners

Promote Inclusiveness Focus on “main street Saskatchewan” Not “another government program”

4

Current Environment

Venture Capital Investment Categories

Small Capital: <$1,000,000 to new or existing enterprises

Mid-Size Capital: $1,000,000 to $5,000,000

Large Capital: >$5,000,000

5

Investment Gaps

Stages: Research and development Pre-commercialization Start-ups Growth

Size: Small capital investments

• Those who require <$1,000,000 in financing

Sector: No gaps identified – all to be considered Conventional agriculture and retail

6

Proposed Framework

Entrepreneurial Foundation (not-for-profit)• Advisory service for entrepreneurs seeking

capital of <$1,000,000

Entrepreneurial Fund• Fund established to make <$1,000,000

investments (as recommended by the Foundation)

7

Proposed Foundation and Fund Structures

Entrepreneurial Foundation

advisory role to applicants

Adjudication Board Makes

recommendations for potential investments

Experienced business people and professionals.

Entrepreneurial FundManaged by external

partner & qualified fund manager

8

The Role for Credit Unions

Provide link between local entrepreneurs and Foundation

Provide community leadership through relationship to Foundation and Fund

Get first look at potential commercial customers Bring to life the system’s vision of “growing

communities and its mission: “To enhance the economic and social wellbeing of our members and communities, we provide financial solutions.”

9

Entrepreneurial Foundation Board of Directors

Chairperson - Keith Brown, President and CEO Trailtech Inc.

Vice-Chair – Garnette Weber, CFO, Itracks Sonja Dahlman – Economic Development

Officer, Assiniboia Warren Sproule, Partner, Kanuka-Thuringer Garth Melle – Vice President, Research and

Development, SaskCentral

10

Entrepreneurial Foundation Board of Directors

Ray Ahanekew – Acting President, SIIT Doug Gill – Industry Liason Officer,

University of Saskatchewan Bob Schad – Industry Liason Officer,

University of Regina Larry Spannier – Senior Vice President,

Crown Investments Corporation

11

Entrepreneurial Fund

Model consistent with traditional venture capital structures

PFM Capital Inc. was selected as fund manager

Fund manager will make investment in fund

12

Current Status

Foundation and the Fund publicly launched Nov 9, 2005.

Foundation CEO is in place Please watch for further information