You do not need full-time staff in place before you apply. But, one of the primary objectives of UCeed is to accelerate the development of technology and to do this effectively, your company will require a minimum number of dedicated, full-time personnel focused on developing the company and its associated technology. Should your company receive an investment offer from UCeed, we will propose a reasonable transition period to allow the company enough time to hire its T4 employee(s).
Your company does not need to be incorporated before applying. However, UCeed only invests in companies so incorporation is required prior to the transfer of investment funds.
Revenue share agreement
University of Calgary based startups do not need a Revenue Share Agreement (RSA) in place before you apply. However, should your company receive an investment offer from UCeed, one of the conditions will be that an RSA, if applicable, has been executed before UCeed advances funds.
Investee’s Board seat
UCeed will not request a Board seat as a condition of investment but may request an observer status in some situations. If Innovate Calgary feels the investee may benefit from a governance structure, then it may recommend that an independent director join the Investee’s Board as a condition of investment.
For approved projects and companies
Depending on the UCeed Fund and type of investment a number of different securities are used. Since it is often difficult to value companies that are very early in their development, where applicable, convertible notes or simple agreements for future equity (SAFE) are used to help defer the valuation question until the investee can attract a sophisticated investor who is in a better position to assess value.
UCalgary has an inventor-owned intellectual property (IP) policy, meaning that UCalgary creators own their inventions, but inventors must enter into a Revenue Sharing Agreement with UCalgary or Innovate Calgary when they are at the point of commercializing.
IP can be assigned to a spinout company in the most efficient and cost-effective manner with no encumbrances or special terms that would be considered detrimental to attracting capital from future sophisticated investors.