Frustration is the word of the day, as many business owners say they can not find financing needed to keep their companies viable.

In fact, 93 per cent of new companies said they need the financing to be able to grow; however, 82 per are not confident they will be able to receive it, according to a study conducted by the Innovation Synergy Center (ISCM).

While it is integral to a new company to secure financing by way of investors and lenders, start-ups are finding increasingly difficult to find it. This in many ways can stunt their growth.

"These numbers are of concern because early stage companies are the foundation of Ontario’s economy," said Catarina von Maydell, Director of the ISCM Investment Network, in announcing the findings. "The province's economic strength is dependent on early-stage companies being given the opportunity to thrive and grow, and obtaining appropriate investment is integral to their success."

Furthering many owners' frustrations is the fact that they are not well aware of where to find financing (64 per cent), and what many investors are looking for (66 per cent). Conversely, companies which ranked the lowest are in the process of seeking financing to enter the marketplace.

"These numbers show that companies that are about to start generating revenue often face a void of financing," von Maydell said. "While there are several government grants and tax credits available for product research and development, once the product is market-ready, it’s difficult to find support because investors and lenders are often most interested in companies that are already generating revenues."

To help new businesses, the ISCM will offer a half day forum called Money Chase on January 24. It will show what options are available for early-stage companies, in terms of financing. The forum will have representatives from financing organization present to offer advice and outline what business can do.

"Since potential sources of financing for early-stage companies are so diverse and fragmented, it's difficult for promising young companies to find appropriate funding," von Maydell said.

Some financing institutions that will be present at the Money Chase forum are: Wellington Financial, Royal Bank of Canada, Pivotal Decisions, Business Development Corporation, the National Research Council's Industrial Research Assistance Program, and the Ontario Centres of Excellence’s (OCE) new Investment Accelerator Fund (IAF), to name a few.

More information can be found at www.iscm.ca.

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