Concept stage of company development: Funding, investors, risks and expectations

At the concept stage of company development (stage 1), you have an idea and are exploring the feasibility of building a technology product or service based on that idea. You’re working to determine how you will build the product or deliver the service, and to identify the target customers, partners, distributors and competitors in your market.

Funding sources for company development

  • In Ontario, development costs for technology concepts may be funded through grants and other programs.
  • Market research, product design, and other early-development costs are usually funded by the entrepreneur or their family and friends.

Risks to investors

The risk at this point of a venture is generally considered high. While investment capital requirements are relatively modest (< $250,000), the business usually has no revenue.

Funding expectations

The funding received in the concept stage will be used to:

Learn more about the other stages of company development:

Thinking of raising money? We’ve created a free online course to help you get investment-ready. Check out Introduction to Investment Readiness and learn useful tips, tactics and strategies to prepare for your seed fundraising round.


Canada’s Venture Capital & Private Equity Association. Retrieved April 19, 2009, from
National Venture Capital Association. Retrieved April 19, 2009, from
National Angel Organization. Retrieved April 19, 2009, from