Sean Del Giallo

Startups need 💸 to grow, but navigating the options can be overwhelming 😅 Thankfully, our friends at @Dentons discuss raising capital for emerging growth companies in our latest blog series 🙌 Don't miss part 3 all about #Equity #Financings! 👉bit.ly/41pnEbT

Convertible debt vs. SAFEs: what's the difference? 🤔 Find out in Part 2 of @DentonsCanada's Financing 101 Series 💸 👉 bit.ly/44542wg CC: @chaserirwin @SeanDelGiallo

Thanks @LSPARKGlobal! Check out the first of our three part series Financing 101 for Startups: SAFE financings 👇

Another year, another fantastic @SAASNORTH Conference! Our Dentons team had a great time meeting with many of the country’s top SaaS founders and their teams (including many of our own very talented clients!)

Fantastic times at last night's #saasnorth Welcome Reception. @Dentons Venture Tech team is proud to support such a great event and ecosystem. Shoutout to @LSPARKGlobal, @dave_tyldesley, along with co-sponsors @OMERSVentures and @PwC as well!

Are you looking to build your negotiation and law skills? Our annual negotiation competition alongside @uOttawa will allow #lawstudents to hone their preparation and lawyering skills through negotiations. Register by September 20: negotiation.ca.dentons.com

It's an honour to be recognized by my peers in the 2023 edition of Canada’s Best Lawyers: Ones to Watch in the area of Mergers and Acquisitions. I also want to congratulate many of my phenomenal colleagues, mentors and friends on their recognition! dentons.com/en/-/media/PDF…

Thanks to @LSPARKGlobal and each of these excellent panelists! Don't hesitate to reach out if you're part of a founding team looking to fundraise in Canada!

@LSPARKGlobal A9. Yes, this happens often in funding rounds. Also, carefully review lending terms as some programs that appear to be non-dilutive may include warrant kickers or a convertible component that will dilute shareholders at some point in the future. #SaaSChats

Q9. Is there ever a hybrid approach to combine non-dilutive and dilutive funding? #SaaSChats

@LSPARKGlobal A8 The best sources for potential developments in this area are your: 🏦 Banking partners 🤝 Service providers 🧮 Accountants ⚖️ Lawyers I always found consulting fellow CEOs or CFOs was a key source of good insights. #SaaSChats

@LSPARKGlobal A8. @MarsDD offers a great Startup Toolkit, including resources on non-dilutive funding: learn.marsdd.com/article/levera… Also be sure to keep up with the latest insights from @DentonsVTG on dentonsventurebeyond.com #SaaSChats

Q8. How do you stay current on the latest developments in non-dilutive funding? Are there any resources you recommend following? #SaaSChats

@LSPARKGlobal A7. Ontario SOFII loans, @NRC_CNRC IRAP, FedDev and SR&ED credits are all great sources of non-dilutive funding programs #SaaSChats

Q7. What is one of the lesser known programs you've seen work? #SaaSChats

@LSPARKGlobal @Anne_NoDelaide Absolutely. If your pitch looks like this, it needs more work:

@Anne_NoDelaide In other words...

Q6. What information should companies have before initiating a non-dilutive round of funding in order to best prepare? #SaaSChats

@LSPARKGlobal A6. Ensure your corporation is clean from a business, finance and legal diligence perspective. For early stage ventures, be organized, be prepared to describe the founder team and vision & have a proper business plan and deck available #SaaSChats

@LSPARKGlobal A5 Pros: Non-dilutive, less costly than a priced round and founders can typically maintain more control over the D2D business. Cons: Repayable, secured against company assets and may have a maturity date, which can impede businesses with low cash flow. #SaaSChats

Q5. What are some of the pros and cons of non-dilutive funding? #SaaSChats

@LSPARKGlobal A4. Look for an investor who can provide growth capital, scale with you & provide support services throughout the corporate lifecycle. Pay careful attn to neg. covenants/veto rights, which can affect your ability to manage the business or raise add'l capital unfettered #SaaSChats

Q4. What should startups look for in a potential non-dilutive investor? #SaaSChats

@LSPARKGlobal A3. Non-dilutive funding can be most beneficial early in the corporate lifecycle while your company valuation is low, in connection with other dilutive financing or at a critical stage of development when capital is needed #SaaSChats

Q3. When should you start that conversation? At what stage do you find non-dilutive funding to be the most beneficial? #SaaSChats

@LSPARKGlobal .@LSPARKGlobal A2 In under 280 characters: 1. Research investors 2. Apply 3. Provide requested diligence records 4. Understand, accept or negotiate terms 5. Enter into definitive credit agreements 6. Get funded! #SaaSChats

Q2. Describe the process for receiving non-dilutive funding. #SaaSChats

@LSPARKGlobal .@LSPARKGlobal A1 Speak often and early to your networks, investors, shareholders, board, your primary commercial lender, etc. Model your cap table/expected cash flow to better understand how either will be impacted based on your trajectory & intended use of the funds #SaaSChats

Let's get started 📣 #SaaSChats Q1. When raising capital, how can you leverage alternative forms of investment?