Other Details

Typical Transaction Size

Typical investment will range from seed amounts of $100,000 up to $3 million in the first round, with further participation in subsequent financings as is deemed prudent by the Investment Committee. We structure investments in a manner in which Axis retains the right to participate in future rounds of financing such that it may maintain its pro rata ownership position in the investee company.

Economic Clusters

Axis intends to concentrate its sourcing activities in Ottawa and Waterloo because it believes that early-stage technology companies in these geographic areas are more likely to achieve superior results.

Structuring Investments

Axis aims to structure its investments in a manner that provides the investee company with the greatest opportunity to appreciate in value while permitting shareholders to achieve liquidity within a reasonable timeframe. We believe that the founders and employees of the investee company must retain sufficient equity ownership of the company at the time of a liquidity event so as to remain motivated to increase the value of the company.

The form of the investments are negotiated with each particular company, taking into account the investment criteria and guidelines of the Investment Fund, the recommendations and instructions of the Investment Committee, the long-term requirements of the investee company, the stage of investment, and tax considerations. Axis' investments may take the form of debt (with or without conversion features), debt with warrants to acquire shares or participation in cash flow or earnings, preferred shares (with or without conversion features) or common shares. Certain investments may involve a combination of these instruments. Typically, we seek to protect invested capital through floating charge security and financial covenants (if in the form of debt), and obligations in respect of board representation and continuous financial and other disclosure, as well as share ownership arrangements (if in the form of equity).

Participative Venture Capital Approach

Investee companies of Axis are aided by our ability to add value to each investee company through, among other things, participating on the board of directors, providing strategic assistance and business advice, monitoring business performance, assisting in arranging financing and the provision of professional services, as well as helping in the investee business's recruitment efforts.