Frequently Asked Questions
What is the minimum investment from Cape Breton Capital Group?
Our investment is $130,000. We have reserved some of our fund for follow on investment, but we generally do not go above or below $130,000.
What does the investment process look like?
Our investment process at Cape Breton Capital Group is unique to other funds because our investors are very active in the investment process. Once you have submitted an application through our website, our Manager will be in touch with follow up questions should we be interested in learning more about the company and opportunity.
As you enter the due diligence process you can expect a bit of back and forth with questions. Once we are satisfied with the information we have, we will invite you to pitch to the General Partners. The General Partners will then make a recommendation to the Limited Partners who will also see a pitch.
This second pitch is to help the Limited Partners understand the company better. After a Q&A period, if the Limited Partners like the deal they recommend the investment and a term sheet is drawn up.
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How long should I expect before an investment decision is made?
We ask applicants to factor 6 to 8 weeks for their application to move through the investment process. Lots of factors impact timing, the number of current applications under review and the preparedness of the company are two major factors.
What should I have prepared when I approach the Cape Breton Capital Group?
You do not have to have anything prepared to reach out for a meeting. Those who are submitting an application, we recommend you have your financial statements, a Cap Table, a budget, and employee bios ready to share. These are all things we can assist you in getting ready with, so reach out should you have any questions. A full list of things to consider when preparing for investment can be found here.
What sort of involvement is the group looking to have in my company?
Cape Breton Capital Groups involvement in companies is dependent on a case by case basis. We are not interested in being involved in the management of a company, but may suggest that a position be added to the team or that we receive a seat on the board. All of these things will be discussed before the investment and outlined clearly in the term sheet.
That said, our 26 members are available to our portfolio companies, should they need advice, an introduction or have questions about something. We are always happy to make time to support our portfolio through mentoring and advising.
What kind of reporting will I be expected to provide if Cape Breton Capital invests in my company?
We expect quarterly reporting from all of our portfolio companies. We provide companies with a fillable template to make it easy to share the information we are looking for. We expect you to report on revenue, EBITDA, grants and government assistance, monthly burn rate and runway, staffing updates, any changes in staff located in Cape Breton, new market updates and advisory board updates. As well as any requests for advising or support you may be looking for from the group.
What is the Cape Breton Capital Group looking for in companies?
Cape Breton Capital Group is looking at two types of investment categories. The first being innovation companies with high growth potential. The second being support of those looking to purchase an existing company through succession planning.
The first thing we look for when reviewing an application is the number of staff located full time in Cape Breton and what their roles are within the company.