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PAGE 12, WH1Ty FREE PRES, WEDNESDAY, MAY 23,.199<0 hutb el -e \~-~ '~->~> ll~=~Y7~- Seed capi'tal- available for innovative ideas SWeed Capital froin Innovation Ontario Corporation (10) hba helped many businesses. develop te a point where private venture capital is more readily attaýnab1e. But as the following examples illustrate, it's just the firet important rung in a long ladder te the tep. The need for further capital is an on-going fact of doing business. Toronto-based Omphalos Recovery Systems has developed a unique technology that perzmts positive identification Of individual gems. It's a product with obvious potential for insurance firms who have millions of dollars worth of unidentifled, loet or stolen geins ini their vaulte. "The market's response te our idea is very positive" says Omphaloo president ,Hermann Waflner. 'In a nutshell, they want it as soon as we can deliver it. But getting it ready for the market is a long process. Our product embodies two separate technologies: software developed here and a laser process called Gemprint, developed in the U.S. To get into business we had to flrst of all buy out Gemprint. I00 provided us with sufficient capital te do that and more. Vhey've been terrific people te deal ',with and a great help te us. But buying Gemprint necessariiy absorbed a lot of that money. We sucoessfully raised somne additional private capital but that came in a littie at a time over a 16-month period." "Al oýf this has inipoeed some limitations in termes of how fast we can proceed with cur plans. Now we need further capital te set up a development lab for the technology. Were stilI not far enough along in the development cycle to attract private venture capitalists; but wehr looking at other sources." Dr. Gardon Rosenblatt, president of Toront? Paradigma Biotechnologies, is having mucli the sarne experience. Paradigmn is developing and cornmercializing bio.sensor sud bio-materials technology based on important patents purchased froin the Allied Signal Corporation. Initial studies completed by the Universityr of Toronto and Toronto General Hospital indicate great potential for the products but the research and development that goos into these products requires further funding.' "In July of 1988 we received seed investment from I00 and without that help there probably wouldn't be any Paradigm," says the firm's president, Dr.- Gordon Rosenblatt. 'But now we need. further funding to staff and fully equip our Iab, develop manufacturing facilities and carry out internai and external research. We"re stil at the pre-manufacturing stage and w. don't expect te, have producta on the market for another year or two."9 As I00 consultant Bob Murakami points out: 'Even with adequate funding, you need te critically examine the market in depth and ask youraelf if your projected miarket share is rea]istic. Can you really expect te penetrate 3 percent of the market or is it dorinated by a few key players who can easily shut you out. Are you sure that your target customers perceive a need for your produet? How long is the sales cycle going te be - the answer deterznines your cash flow."f In our next column we'1l look at another source of help called the Canadian Industrial Innovation Centre. It complements the role played by TOC and although it doesn't lend money it can save you a lot if you're just starting out. Best Wishes Tc The SPýýG Compliments of GUS BROWN PON-TIAC BUICK LTD. Goodwill Used Ca rs Leasing - Ail Makes * GM Service & Complete Modern Body Shop Parts "WeII, 1 hope this f unding Iadder works, becauso It's our lest hope!" Student ventu re capital program dead]lne ne ar Stuidents interested ini establishng and operating a summer business have until June 8 te apply for a boan froin the Student Venture capital Program. The prograin provides interest-free loazis of up te $3,000 te students age 15 sud older who are returning te achool fuil-time in September. In 1989, the prograin provided more than 1,100 students with boans to help them start their own summer businesses. The prograin is administered by the NMity of Industry Trade suad Technology in conjunction with local chambers of commerce, boards of trade'and the Royal Banik of Canada. Interested students can obtain application formeansd further information at their school's placement office, or by cabling the Youth Hotine at 1-800-387-0777.' 'Charilty Burger Day' at"] M&M Meat Shop at the Ken- dalwood shoppi plaza in Whitbywill hoid'Chganty Bure Day onSaturday,June 6te ris fuds for the C ansuFounda- tion for fleitis sud Colitis. -The Whitby location will be one of 67 M&M Meat Shops-i Ontario to hold the event which raised, in total, $50,000 last par for the foundation. wmDows AND WmDOWE A pleasant social club for widows sud widowers will hold its next meetingon Sunday, May 27, 7:30 p.m., in the- 420 Wing, Oshawa Airport., Dancing, shuffieboard, darta sud cards. For more information' call Ernue, 683-2045, or Forbes, 430-0130. On Gharity Buzr Day, custe- mers can order a babcié bur- graddrink for a miiu dontio of$1. Mac Voisin, predent suad chief executive officer -Of M&M say tisyer'0fndoiing goal for ntio stores is $100,000 Voisin,- f«merly -a home bml- Kitchener. à[i190n YARD SALIE A yard sale will be held by Christ theKngoSaudy May 26 atthelPassprtWhitby car dealershi atGlen Hill Di. and Dundas St. E. Baked gop clohn and items forai ages will be offered, sud there will b. face painting for kide, and clow,ýns. Ail welcome. GU "RWhee PsOmeTIAis.bIngstifie. SPACE FOR LEASE RETU W1 t store compete with heating private washroom. $12.00 per sq. ft. Net/Net OFFICE1200 sq. ft. off ice. Seff-contaned wfh private conditioning, broadloom and ighting. Ready to move in. $12.00 per sq. ft. Net/Net. CALL JOHN WAGNER 427-6283, 666-3665 Comin geven ts [YOUR BUSINESS ROOIIÇLIN IfAIR