CAMP

Having direct business ties to the Chinese marketplace is more important than ever for Ontario-based start-ups seeking an international presence. The China Angels Mentorship Program (CAMP), a joint initiative of Ontario Centres of Excellence and the China Canada Angels Alliance (CCAA), is a virtual incubation program designed to help start-ups prepare their businesses for the Chinese market.

The goal of CAMP is to help these companies shape their business model to fit the Chinese market, enter the marketplace and begin to scale their business. This is accomplished by providing mentorship, investment and direct business ties to the Chinese market. Initial seed investments range from $100,000 to $200,000 from CCAA investors, with possible co-investment by OCE through the Market Readiness Program, subject to program eligibility and criteria.

During the first phase of this initiative, OCE and CCAA will select 10 Ontario-based start-up companies who will obtain investment and mentorship opportunities from prominent Chinese angels. These entrepreneurs will then spend the next year building a relationship in both Ontario and China with the investors and learning how to adapt their business plans towards successfully entering the Chinese market. As part of this unique mentorship experience, the companies will travel to China to work with their investors overseas, giving them the unparalleled opportunity to immerse themselves in the Chinese culture and market. Selected companies will also have a two-year, ongoing mentoring relationship with CCAA during their time as a part of CAMP.

How CAMP Works

OCE will identify companies for potential investment by CCAA investors through the CAMP initiative. CCAA will evaluate the potential investment opportunities and be responsible for the final selection of companies for investment and participation in CAMP.  Any co-investment by OCE will be on a case-by-case basis through OCE’s Market Readiness Program, subject to program eligibility and criteria.

During the initial phase of the program, 10 Ontario-based start-up companies will be selected for investment and mentorship opportunities from prominent Chinese angels.

While CAMP may consider companies from any sector, preference is given to IT-based companies, including healthcare IT, cleantech IT, finance IT, artificial intelligence and sustainability IT.

Program Components 

1. Potential capital investment between $100,000 and $200,000 by CCAA investors, with potential co-investment by OCE through its Market Readiness Program

• The CCAA investment will be subject to a final term sheet.  For each investment, CCAA investors will take an equity position in the investee company and have the first right of refusal for next round of investment.
• OCE co-investment will be determined on a case-by-case basis. Any co-investment by OCE will be made through OCE’s Market Readiness Program and subject to program eligibility and criteria.  For co-investments at the Market Readiness Customer Creation stage, OCE’s investment can be convertible debt.  For co-investments at the Market Readiness Company Building stage, the terms of OCE’s investment will be determined by the terms of the investing party who is matching OCE’s contribution in the round.  Typically, OCE would participate ratably on those same terms.

2. Incubation and mentorship program that matches and embeds Chinese investors and mentors who have a strong track record of growing companies in China with selected Ontario start-ups to develop Chinese market opportunities and prepare start-ups for successful entry into the Chinese marketplace.

• Start-up companies will be matched with Chinese investors and mentors who will work with the company during the CAMP and throughout the virtual incubation process.  Ongoing mentorship will be provided over a two-year period and is subject to an agreement amongst the mentors, CCAA and the company.  It is anticipated that mentors will receive a warrant to invest in the following one and a half to two years  at the current valuation.
• Two-week cohort-based training in Beijing, China
• Three-day, quarterly mentorship sessions in Toronto
• Matching of company with Chinese- based business and channel partners

Selection Criteria

• Company must be an Ontario-based, early stage company  seeking to commercialize its technology in the Chinese market
• CAMP may consider companies from any sector, however preference is given to IT-based companies, including healthcare IT, cleantech IT, finance IT, artificial intelligence and sustainability IT
• The company’s core product or service must be technology/innovation based, and the applicants must demonstrate that they are free to use, develop and commercialize the IP without any third party rights
• Company should have a minimum of two or three full-time employees
• Company must be investment ready and must have a fully developed prototype
• Company should have some pilot customers
• Company must be willing and able to travel to China for two  weeks to work with local investors and mentors
• Company must participate in quarterly three-day mentorship sessions in Toronto for the next two years

Selection Process

• OCE will identify potential companies for participation in the CAMP program on an ongoing basis during the company identification period (see table below for specific timelines for 2019)
• OCE will be responsible for an initial screening based on program eligibility and alignment with program objectives
• OCE and CCAA will then work together to identify applicants who qualify  to present to a panel of potential CCAA CAMP investors
• Selected companies will present to a panel of CCAA CAMP investors
• CCAA will make the final selection of companies to participate in CAMP
• Any investment by CCAA investors will be subject to the completion of satisfactory due diligence, the negotiation of documentation satisfactory to the CCAA investors, and the receipt of any applicable regulatory approvals

Timelines

Selection Round 1
OCE identification of potential participants	To early July 2019
OCE-CCAA screening	Late July 2019
Pitch to CCAA investors and final selection	Early August 2019
Selection Round 2
OCE identification of potential participants	To late August 2019
OCE-CCAA screening	Early September 2019
Pitch to CCAA investors and final selection	Late September 2019
For all CAMP selected companies
Two-week, cohort-based training in Beijing, China	Late Fall 2019
Three-day quarterly mentorship sessions in Toronto	Continue for 2 years following selection to CAMP

How to apply

• OCE will identify potential companies for participation in the CAMP program on an ongoing basis
• Companies interested in the program may contact any OCE Business Development Manager for additional details

About CCAA

China Canada Angels Alliance Ltd., CCAA, registered in Toronto 2014, is a Canadian not-for-profit angel group being certified  as corporate members of Network of Angel Organizations-Ontario (NAO-O) and National Angel Capital Organization (NACO). CCAA is committed to building cross-border eco-system for early-stage innovative companies between China and Canada through  co-investments, value-added mentorship, and connections to overseas channels and resources. As of April 2019, CCAA represents 28 prominent and resourceful angel investors mostly from China and 11 private institutions/funds from China which connect to 150 mentors from top 40 mobile/internet Chinese companies as well as other sectors in ICT, UAV, AI, Life Science, Cleantech, etc. CCAA investments range from $50,000 to $8 million per deal. CCAA investors have a successful track record in China with nine investee companies at more than 100 times the returns over the past seven years. CCAA is dually operated in Canada (Toronto) and China (Beijing) to accelerate the communication and decision making, and will syndicate with Silicon Valley partners when needed.

For additional information about this program, please contact:

Lily Lam

Regional Director, Business Development (Central Ontario)
Ontario Centres of Excellence
Phone: 416.861.1092 x 1031
Email: Lily.Lam@oce-ontario.org

Alan Yang

Vice President, Partnership and Screening Committee
Canada China Angels Alliance
Phone: 647.280.0652
Email: alan.yang@cc-angels.com