NEWS & EVENTS
Restoring ACT

Advanced Cultural Technologies Inc. (ACT) was restored on December 2, 2016. The Company has been dormant since 2011.
Restoring Fibresources

Management is also undertaking to restore Fibresources Corporation, which was halted on the TSX Venture Exchange in 2009. It remains listed on the TSX NEX Exchange under the symbol FB.H.
Upcoming Financings

NetEquity Capital expects to undertake several financings on behalf of Affiliate Issuers in latter 2016 and 2017, subject to regulatory approvals.
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Investment Capital Choices For Investors And Entrepreneurs
Both investors and entrepreneurs have a range of choices in the how they come to a transaction choice. For investors the choices involved mostly a risk / reward assessment, within their level of comfort. For businesses, the trade-off is how much the principals need to give up to get the money they want and need.
The Start-Up Conundrum: Which Comes First, The Business Or The Investment?

Enough Capital?

The success of many start-up businesses depends on raising enough investment capital. Many businesses fail for lack of sufficient capital.

Viable Business?

Success in raising capital is dependent on the viability of the target business. The business case for many Internet start-ups is however unproven.


Risk / Reward Assessment
There is continuous conflict between entrepreneurs and investors, with entrepreneurs seeking capital in greater quantities and better terms, and investors wanting greater certainty in the proposed business and more equity for their money.
Benevolent Versus Predatory Capital: Control Issues For Entrepreneurs

Benevolent Capital

Government programs are the most benevolent and supportive for start-up businesses. On the other hand, many government programs require as much or more certainty in the proposition as venture capitalists, while the outcome of the request is equally uncertain.

Predatory Capital

Many venture capital funds or "angel" investors look to taking increasing control of the business through successive investments. They typically require extensive business disclosure to apply, and the outcome is highly uncertain.


Financial Market Restrictions On Accessing Retail Investors
Regulatory changes since the Year 2000 market crash and the subsequent Year 2008 market crash, while nominally intended to protect the retail investor from high risk investments, has had the effect of making investment capital less accessible to start-up enterprise and pushing these into the hands of capital aggregators who tend increasingly to be predatory in their lending practices.
Tax Mitigation Of Private Investment Risk For Early Stage Start-Ups

ABILS (Non-Capital Losses)

Investment losses in private equity of active small business qualify as Allowable Business Investment Losses, or ABILS, 50% of which can be written off against regular taxable income.

Stock Market Capital Losses

Losses in the stock market are Capital Losses, 50% of which can only be written off against other taxable Capital Gains.


Small Business Capital Gains Exemption
On the up side, not withstanding the direction market regulators have taken, for investments in Canadian Controlled Private Corporations (CCPCs) held for more than two years, the Capital Gain on disposition can be claimed as a Small Business Capital Gains Exemption to a lifetime maximum of $824,176. This can be particularly lucrative for private shareholders in a successful start-up.

Additional Government Incentive For Private Equity Investing
Should the investment not turn out, the Government of Canada through its taxation policies provides a significant incentive for small business investing by mitigating risk through a much more beneficial ABIL write-off of 50% against any other taxable income.
A BC VCC As A Balanced Sweet Spot In Capital Options
In addition to the above tax incentives, a BC VCC offers the following:
  • Provides an extra 30% Tax Credit to reduce investor risk.
  • Is a designated investment in the Income Tax Act for RRSP, RIF, TFSA contributions.
  • Provides for a level of government mandate regulation...
  • while being prohibited from taking over control of the small business.