Funding SME’s – Why should we care?
by Joseph Batty, CPA, CA
There are several ways to look at this question:
- One can take a very conventional approach and follow the advice of a financial planner.
- or, one can act individually and use the self-directed option that is available with any plan (whether it be a TFSA/RRSP or any unregistered investment).
- or, one could do a combination of these options.
Whatever option you choose, you must never lose sight of the fact it is your money and the decisions are yours to make.
From the ABCtech and TechInvest perspective, we encourage people to consider a societal or ethical approach. That being said, once you have been diligent (or fortunate) to save some money and then are able to invest that money into a 3rd party investment, you would like some of your money to be placed somewhere that it will do some “good”. The definition of this “good” is different for everyone, but more generally a common theme for this “good” is that your investment should benefit society. Considering that most people who try to forecast future economic growth are suggesting the majority of growth and new jobs will come from SME’s, it may not be too much of a stretch to agree that investing in SME’s could benefit society (it could expand and diversify Alberta’s economy and provide more jobs for our children).
Another factor worth exploring is more emotional. Many people may dream of being on the ground floor of the next major breakthrough for a medical cure, or an electronic gizmo, or a clean-tech invention, or an energy-saving device, etc. Or find the next Microsoft or Amazon or Facebook to invest in. It may sound far-fetched that a group from Alberta could find such an opportunity, but in reality, if you examine the origins of these new economy giants you will see they all started from humble beginnings. In fact, the experiences that ABCtech and TechInvest have garnered would show several potential world class technologies within our grasp. They include:
- a significant breakthrough in magnetic levitation technology for urban transport,
- a methodology to improve the efficiency of bio-fuels,
- an application of artificial intelligence that will analyze social and economic trends and provide a pension fund manager an early warning of impending portfolio losses,
- an early warning diagnostic for breast cancer.
Each of these requires the finishing capability that TechInvest has amassed and a capital base to cover the cost of the last stages of development.
With the support of a large group of small investors (the 15,000 to 25,000 planned in the TDF) we could be on the inside of these new technology breakthroughs. We could turn this emotional connection into a reality.
We encourage you to think carefully about placing a small amount of your savings into this TDF.