ANNUAL REPORT 2013 N36 entrepreneurs Cam McDonald and Daniel Bartek network at the Art of Entrepreneurship Event with N36 Mentor Andrea Matheson.

"If I'd been lucky enough to be part of The Next 36, I wouldn't have founded ATI Technologies, I would have founded Microsoft."

- Lee Lau, Founder, THE GOAL ATI Technologies

To increase Canadian prosperity by developing Canada’s next generation of high-impact entrepreneurs. SECTION HEADING TABLE OF CONTENTS

01 Message from the Co-Founders 02 By the Numbers 2013 03 Program Overview 06 Major Events 07 2013 Cohort of The Next 36 10 2013 Pilot Cohort 11 2013 Ventures 13 2013 Pilot Ventures 16 Alumni Success 17 Financial Statements 20 Partners 22 Founding Patrons 22 Board of Directors 23 Who is Involved

ANNUAL REPORT 2013 IV MESSAGE FROM THE CO-FOUNDERS MESSAGE FROM THE CO-FOUNDERS

Left to Right: Ajay Agrawal, Tim Hodgson, Claudia Hepburn, Reza Satchu

Too few young Canadians have a chance to know our country’s great entrepreneurs and aspire to be like them. The Next 36 introduces our most promising young people to great Canadian business builders, and provides them an unparalleled combination of relationships, education and seed investment. We believe that by fast-tracking the development of 36 innovators each year, we will help create industry-changing businesses and grow Canada's long-term prosperity.

In 2013, The Next 36’s third year, resources available for our entrepreneurs increased significantly. In-kind donations rose by 26% to an estimated $1,893,000, exceeding total organizational cash expenditures by 15%. Volunteers increased by 25% to 207 and their hours increased by 56% to 6837. The program extended its national base, adding mentors, donors, judges and events in Montreal, Vancouver and Atlantic Canada.

N36 ventures grew in quality and quantity. The number of ventures actively fundraising in August rose from three in 2012 to seven in 2013 and the number of entrepreneurs continuing with their ventures post-program rose from 17 to 26. The 2013 cohort was distinguished by its diversity in culture, language and gender. We had 15 first generation immigrants from ten birth countries. Twenty-one of them communicate in 15 di!erent languages. Our N36 women have overachieved, co-founding six of the seven N36 ventures funded post-program. We expanded by piloting an executive education program for young science and technology entrepreneurs, which has enabled us to enrich the experience for our 36, while increasing the potential of a more advanced young entrepreneur demographic.

Our 2011 and 2012 alumni have gained traction, most notably, Stephen Lake’s Thalmic Labs, which raised $15M at a $50M+ valuation. Our 123 alumni are currently running 33 ventures, employing 151 people, and raising over $18M since leaving the program. Last year, 43 alumni gave back over 650 volunteer hours, donating their time, talent and treasure.

In 2014, we will build on our established strengths and work towards three goals: a fourth most successful cohort yet, a stronger alumni entrepreneurial community, and a truly national community of supporters. If you share our desire to nurture Canada’s next generation of high-impact entrepreneurs, through an unparalleled combination of relationships, education and experience, please join us.

Claudia Hepburn Ajay Agrawal Reza Satchu Tim Hodgson Executive Director, Academic Director, Founding Chairman & Co-Chair, The Next 36 The Next 36 The Next 36 Co-Chair, The Next 36

1 ANNUAL REPORT 2013 BY THE NUMBERS 2013 BY THE NUMBERS 2013

1.9M 151 14 7/12 In-Kind New Full-Time Events Outside Ventures Fundraising Donations Jobs Ontario Post-Program 29% 358% 133% 133%

207 6,837Hrs 159 645K Volunteers From Volunteers Engaged CEOs Invested in (43 Alumni) (654Hrs by & Founders Ventures Alumni) 25% 56% 54% 24%

86% 26 69,352 2,850+ Funded Ventures Alumni Continuing Unique Visitors to Followers with 1+ Female N36 Venture thenext36.ca on Twitter Co-Founders 53% 90%

11 28 42 57 Ventures Continuing Mentors Advisors National Media Post-Program Coverage 83% 83% 78%

The Next 36, Faculty & Alumni Featured in: BNN, Betakit, Bloomberg Business, Business Insider, Calgary Herald, CBC Radio, CNN, Discovery Channel, Forbes, Globe and Mail Inc., Macleans Marketing Magazine, Techvibes, TechCrunch, The Economist, Toronto Star, Profit Magazine, Vancouver Sun, Venture Beat, Wall Street Journal, Wired

ANNUAL REPORT 2013 2 PROGRAM OVERVIEW PROGRAM OVERVIEW

The Next 36 o!ers Canada's most promising undergraduates a series of life-changing experiences and relationships with some of the country's most impressive entrepreneurs and leaders. The program changes the way its young entrepreneurs define problems, March Showcase pushes them out of their comfort zones and March 1st fundamentally alters their goals.

MARCH

NOVEMBER DECEMBER Application Process

National Selection Entrepreneurship Institute Weekend Phase I: Nation-Wide November 29th - December 2nd, 2012 December 2012 - April 2013 After a rigorous application process, N36 entrepreneurs start building their 70 finalists from across Canada meet ventures, working from their home in Toronto for an intense weekend of communities with their co-founders interviews, workshops, speakers and idea and mentors. They participate in generation. The 2013 cohort of The Next 36 online courses and take advantage of is selected, twelve ventures are formed professional advisory services, capital with three co-founders each. Ventures are and market intelligence to begin the matched with two C-suite mentors and development of a mobile or web-based initial business pitches are made by the business. They present their business end of the weekend. case and milestones during the March Showcase at CISCO and via WebEx.

3 ANNUAL REPORT 2013 PROGRAM OVERVIEW

Venture Day August 13th

AUGUST Alumni Ventures

First Pitch Day May 6th 2013 FACULTY Internationally Acclaimed Professors MAY Ajay Agrawal - Peter Munk Professor of Entrepreneurship, Rotman School of Management, University of Toronto Marc Busch - Karl F. Landegger Professor of Entrepreneurship Institute International Business Diplomacy, Edmund A. Phase II: Toronto Walsh School of Foreign Service, Professor of Government, Georgetown University May - August 2013 Brendan Calder - Adjunct Professor of Strategic N36 entrepreneurs arrive in Toronto at Management, Entrepreneur in Residence, Rotman the beginning of May to live with their School of Management, University of Toronto co-founders and build their venture 24/7. Douglas Cumming - Professor of Finance & The Entrepreneurship Institute Entrepreneurship, Ontario Research Chair in consists of in-class instruction taught Economics & Cross Cultural Studies, Schulich by internationally acclaimed faculty and School of Business, York University Canadian business leaders delivering courses important to entrepreneurs from Darren Dahl - Senior Associate Dean, Faculty/ all academic backgrounds. Research and Fred H. Siller Professor of Applied Marketing Research, Sauder School of Business, It also includes workshops on venture The University of British Columbia finance, sales, negotiation, marketing and project management and provides Joshua Gans - Professor of Strategic Management, frequent access to Canadian business Je!rey S. Skoll Chair of Technical Innovation and leaders, who often become advisors and Entrepreneurship, Rotman School of Management, connectors for our entrepreneurs. University of Toronto Young entrepreneurs attend over a Avi Goldfarb - Associate Professor of Marketing, dozen exclusive networking events and Rotman School of Management, University pitch frequently throughout the summer, of Toronto leading up to Venture Day, where they Ramana Nanda - Associate Professor of Business present to investors from across North Administration, Harvard Business School, Harvard America. University 2013 Classes Include: Dr. John O’Dwyer - Partner, Strategic Advisory International • Strategy and Innovation • The Economics of Entrepreneurship Reza Satchu - Managing Partner, Alignvest Capital • Business, Government and the Management Global Economy Stewart Thornhill - Associate Professor of Strategic • Customer Insight – Continuous Management and Entrepreneurship, Executive Innovation Director of Pierre L. Morrissette Institute for • Entrepreneurial Finance Entrepreneurship, Richard Ivey School of Business, Western University

ANNUAL REPORT 2013 4 Encore Co-Founders Steven Heidel, Michael Warshafsky and Nicholas Klimchuk pitch at Venture Preview Night.

"Initiatives like The Next 36 hold the keys to the kingdom when it comes to solving Canada's productivity deficit."

- Chris O'Neill, Managing Director, Google Canada VENTURE PREVIEW NIGHT

Hosted by Google Canada, a select group of VIP investors got a sneak peek at N36 start-ups in advance of Venture Day. MAJOR EVENTS MAJOR EVENTS

May 27 “Meet The Next 36” Stakeholder Event Featuring a keynote interview with Conrad Black, this reception brings together over 100 investors, partners, entrepreneurs and business leaders to meet the 2013 cohort.

June 11 Spotlight on Social Entrepreneurship: The Art of Entrepreneurship Albert Schultz (Soulpepper), Janet Carding (ROM), and Matthew Teitelbaum (AGO) discuss entrepreneurship in the arts sector during an evening at the AGO.

June 12 Women Leader’s Reception Linda Haynes (CEO, ACE Bakery) hosts the women of the 2013 cohort for an intimate evening of networking Young entrepreneurs Gordon Best, Steven Wellman and Ragavan Thurairatnam with some of Canada's most powerful with N36 board member Rebecca MacDonald at the 2013 Stakeholder Event. women in business.

June 18 "I wish The Next 36 November 29 N36 in NYC National Selection Weekend existed in 1989. I could The Next 36 sends five ventures Finalists from across Canada to New York City to pitch to top have grown quicker, if participate in an intense weekend of venture capitalists and network interviews, lectures and workshops with key players in the NYC start-up I could have learned and vie for a spot in the 2013 cohort community. from entrepreneurs of The Next 36. July 9 and mentors, and February 21 Venture Preview Night The Next 36 in Montreal had access to critical N36 ventures pitched to a select Paul Desmarais, Bill Sinclair, Je! group of VIP investors at Google funding when I Speak and Mark Smith host The Next Canada’s Toronto O"ce. needed it the most." 36’s first reception with the Montreal business community. – Brian Scudamore, Founder August 13 & CEO, 1-800-GOT-JUNK? May 6 Venture Day Venture Day brought together Prototype Day over 300 investors and stakeholders, N36 ventures pitch their prototypes and more than 400 live webcast to an exclusive group of investors, viewers. It featured keynote speaker business leaders and partners at the Brian Scudamore (Founder & CEO TMX Broadcast Centre. of 1-800-GOT-JUNK?), 18 venture pitches, graduation and an awards ceremony.

ANNUAL REPORT 2013 6 2013 COHORT OF THE NEXT 36 2013 COHORT OF THE NEXT 36

Jean Alyssa Daniel Gordon Christopher Mallorie Amiouny Atkins Bartek Best Bowal Brodie McGill University Dalhousie Queen's University of Western University – Civil of Windsor – University – University – Calgary – University – Engineering Commerce Commerce Mechanical Electrical and Richard Ivey and Applied (Finance) Engineering Computer School of Mechanics Engineering Business (HBA)

Simon Philip Chen Michael Sandra Louis- Aditya Bromberg University Cheng Cinq-Mars Philippe Dhoot University of of Toronto – Simon Fraser Bishop's Couture University of Toronto – Engineering University – University Toronto – Science (Finance) Université Engineering Interactive Arts – Business du Québec à Engineering Science and Technology Administration Chicoutimi – 3D Science (Biomedical (Design & Media Animation & Engineering) Arts) Digital Design

"On day one, I along with many of the other young entrepreneurs in The Next 36 might have been happy just taking a job at Google. But now, on day 101, I don’t want Michael Nigel to just go work for Google. I want to create Fok Gutzmann the next Google." University University of Alberta – of Calgary – – Steven Heidel, Co-Founder, Encore Commerce Electrical and Computer Engineering

7 ANNUAL REPORT 2013 2013 COHORT OF THE NEXT 36

PROVINCES & Lauren Steven Sean Kim Nicholas UNIVERSITIES Hasegawa Heidel McGill University Klimchuk REPRESENTED Western University of – Economics Queen's University – Saskatchewan & Finance University – Civil Structural – Computer Commerce British Columbia Engineering Science Simon Fraser University University of British Columbia

Alberta University of Alberta University of Calgary

Saskatchewan University of Saskatchewan

Ontario Queen's University University of Toronto University of Waterloo University of Windsor Willie Josh Zachary Joshua Liu Western University Kwok Levitan Levy University York University The University of Queen's Dalhousie of Toronto – British Columbia University University – Medicine Québec – Honours – Applied Commerce Bishop's University Computer Mathematics McGill University Science and and Engineering Université du Québec Microbiology (Mechanical) à Chicoutimi & Immunology Nova Scotia Dalhousie University

Newfoundland Memorial University

FR Lauren Brian Cam Chamunorwa 7 FRENCH Long Luong McDonald Mungoshi SPEAKING & Queen's McGill University Dalhousie Dalhousie University 2 FRANCOPHONE University – – Commerce University – – Commerce Biomedical (Accounting Commerce (Entrepreneurship ENTREPRENEURS Computing & Finance) & Innovation)

ANNUAL REPORT 2013 8 2013 COHORT OF THE NEXT 36 2013 COHORT OF THE NEXT 36

LANGUAGES Sepand Owen Ou Samantha Jarad Plato English Western Bishop's French Norouzi Phelan University – University – Cantonese McGill University Memorial Richard Ivey Health Science Hindi – Software University – School of and Premed Punjabi Engineering Commerce Business (HBA) German Mandarin Russian Hebrew Korean Farsi Czech Slovak Shona ASL (American Sign Language)

Devashish Joshua Ian Tao Nikita Sharma Sideris University of Tarakanov University York University Waterloo – University of Waterloo – Computer Mechatronics of Toronto – – Computer Engineering Engineering Electrical and 21 Engineering Computer MULTILINGUAL Engineering ENTREPRENEURS

15 FIRST Ragavan Jeremy Michael Steven GENERATION Thurairatnam Wang Warshafsky Wellman York University University Queen's Western IMMIGRANT – Computer of Waterloo University – University – ENTREPRENEURS Engineering – Computer Biology Richard Ivey Science School of Business (HBA)

9 ANNUAL REPORT 2013 2013 PILOT COHORT 2013 PILOT COHORT

In 2013, The Next 36 introduced a 12-week pilot program for 10 young science and technology entrepreneurs. This executive program o!ers world-class business education for promising young entrepreneurs without business training to increase their capacity for success.

Foteini John Ahmed El Abraham Karl Dmitriy Agrafioti Carbrey Ka!as Heifets Martin Mitchev Co-Founder & Managing Partner Founder – Co-Founder – Co-Founder & CEO – CTO – Bionym – SharpSchool Oncoustics Chematria CEO – Bionym Finmaven

"I have learned more in the 3 months with The Next 36 than in the 3 years I was at university."

Clifton van Douglas Jason Max – Max Teitlebaum, Founder der Linden Lusted Silver Teitelbaum & COO, WhatRunsWhere Founder & Founder & CEO – Co-Founder Founder & COO – Executive Director WestonExpressions & CEO – WhatRunsWhere – Vote Compass Modojenda

50% 19 8/10 2 Have PhD Combined University Post-Program University Credentials Degrees N36 Donors Dropouts

ANNUAL REPORT 2013 10 2013 VENTURES 2013 VENTURES

Needle Needle is a platform that connects employers with designers. Employers use Needle to identify creative talent for projects such as web design, graphic design, app design, and more. needlehr.com @NeedleHR Accomplishments: Showcase 120K+ designers, Created 400+ employer- designer connections, Won the Oustanding Venture Award

Boxit Encore Glimpse Boxit o!ers a!ordable convenient Encore is a concert listing app Glimpse provides real estate agents storage and provides value to designed around the experience of live with comprehensive profiles of high customers by facilitating the selling, music events. It aggregates photos potential homebuyers by giving sharing and gifting of stored items. and videos taken by concert-goers individuals the ability to search for The delivery service and online portal on social media sites to create unique the perfect neighbourhood based on provides a convenient and e!ortless time capsules for these concerts and their needs, lifestyle, and interests. experience. festivals. glimpseglimpse.com boxitnow.ca encoretheapp.com @glimpseglimpse @BoxitNow @encoretheapp

Music Quest Phashtag Purchext Music Quest is creating the next Phashtag allows brands to see when, Purchext improves the financial generation of fun and intelligent where and who is interacting with communication between parents and learning experiences for children by their products in the images that get teens by adding innovative mobile using mobile sensors, data science uploaded to social media through and web-based solutions to solve and game simulations. proprietary image recognition the current need for easy transfer of technology. money and smarter monitoring tools. musicquestapp.com @MusicQuestApp phashtag.com purchext.com @PhashtagInc @purchext

11 ANNUAL REPORT 2013 2013 VENTURES

Bridgit Bridgit brings the flexibility of mobile devices to construction sites by eliminating costly delays from miscommunication on site, through trackable and tagged multimedia messages between contractors. gobridgit.com @GoBridgit Accomplishments: Closed angel round, Nine paying beta-testers

Seamless Mobile Health Sesame IO Snapy Seamless Mobile Health is an award- Sesame IO helps teachers capture and Snapy is a turn-key solution that winning technology company with assess students on a day-to-day basis. auto-reconciles payment transaction a mobile platform to empower It streamlines planning to feedback information from payment gateways patients to manage their recovery and creates a digital portfolio that into cloud based accounting software. after surgery and enable hospitals provides holistic insight into each getsnapy.com to catch complications and prevent individual's learning progress. @get_snapy readmissions. sesameio.com seamlessmhealth.com @sesameio @seamlessmhealth

"The Next 36 provides a learning environment like no other. Not only has my N36 experience SwitchPic given me tremendous opportunities to hone my SwitchPic adds emotions to moments own design skills, it has also given me the chance in your life. To add emotions to photos, use the app to capture not to work directly with some of Canada's brightest only your moment with the rear-facing camera, but also your expression with young innovators in a multi-disciplinary team to the front-facing camera. build something with huge impact." getswitchpic.com @SwitchPic – Michael Cheng, Co-Founder, Needle & Satchu Prize Winner

ANNUAL REPORT 2013 12 2013 PILOT VENTURES 2013 PILOT VENTURES

Bionym Bionym is the creator of the Nymi, the only wristband that authenticates the wearer using their unique cardiac rhythm, and enables seamless access and personalization for the connected world. bionym.com @bionym Accomplishment: Launched Nymi for pre-order in September 2013

Chematria Finmaven Modojenda Chematria makes drug discovery Finmaven is a capital markets Modojenda helps service-providing more e"cient. With ground-breaking social data science firm. Finmaven's businesses book more appointments machine learning algorithms running products allow clients to monitor the by leveraging data acquired through on the biggest supercomputer in social buzz for over 9,000 publicly an online booking and appointment Canada, they extract actionable traded securities, brands, and management platform. insight from massive biological data products across a variety of social modojenda.com sets for pharmaceutical researchers. media sources. chematria.com finmaven.com @Finmaven

"I was determined to build something big after leaving academia. The Next 36 Oncoustics Oncoustics aims to enhance the expanded my understanding of what was e"cacy of cancer research and treatment by bringing to market possible and gave me the network and novel ultrasound-based cancer confidence to make it a reality." treatment monitoring technology. oncoustics.com – Foteini Agrafioti, Co-Founder & CTO, Bionym

13 ANNUAL REPORT 2013 2013 PILOT VENTURES

WestonExpressions WestonExpressions is a digital signage network that unites online promoters with mobile users easily through their product Linkett. westonexpressions.co @WestonEx / #Linkett Accomplishments: Rapid growth in pre-orders since July 2013 launch, Set to ship in Fall 2013

SharpSchool Vote Compass WhatRunsWhere SharpSchool is a leading provider Vote Compass is an application WhatRunsWhere is a competitive of educational technology solutions for news media organizations that intelligence platform for display for schools and districts. SharpSchool leverages Big Data to help engage and mobile media buying that helps specializes in communication and citizens during election time, by advertisers buy more intelligently, run learning platforms, built to enable showing how their views align with profitable campaigns, discover new community engagement. candidates running for o"ce. tra"c sources, and keep an eye on their competition. sharpschool.com votecompass.ca @SharpSchool @votecompass whatrunswhere.com @WhatRunsWhere

3 1,362,606 4,000+ 3,000+ Product Launches 2013 AUS Election Pre-Sold Nymi Schools & (Finmaven, Linkett Vote Compass Wristbands Districts Using & Nymi) Responses (Bionym) SharpSchool

ANNUAL REPORT 2013 14 Melinda Jacobs, N36 2012 Alumna, presents to international delegates at the Taipei Canadian Trade O!ce.

"The Next 36 has expanded my aspirations for both Canada and myself. All alumni should feel compelled to give back as a result of the impact The Next 36 has had in our lives."

- Omer Dor, Co-Founder, ALUMNI ENGAGEMENT Mobicare (2012)

N36's first three cohorts, totaling 123 entrepreneurs, have started to pay it forward. In 2013, N36 Alumni volunteered 650+ hours, 35 served as advisors and the program welcomed its first alumni donors.

Alumni Emily Dimytosh Willie Kwok Anne-Marie Paquette Alumni Donors Rafal Dittwald Paul Lee Jade Proulx Co-Presidents Omer Dor Josh Levitan Mike Schmidt Foteini Agrafioti Samantha Juraschka Jessica Fan Daniel Licht Devashish Sharma (2012) Jean Amiouny Michael Fok Alexandru Litoiu Jason Silver* Aidan Nulman (2011) Daniel Bartek Scott Greenberg Joshua Liu Edward Sun Gordon Best Nigel Gutzmann Brian Luong Ian Tao Outstanding Christopher Bowal Steven Heidel Douglas Lusted* Nikita Tarakanov Alumna/us Maxwell Brodie Pilwon Huh Karl Martin* Ragavan Award Krista Caldwell Thurairatnam Melinda Jacobs Dan McCann Omer Dor (2012) John Carbrey* Clifton van der Linden Simon Jalbert Dmitriy Mitchev Philip Chen Anthony Vaz Gracen Johnson MoneyBites * Donations pledged Michael Cheng Media Inc.* Je! Wandzura and received in Samantha Juraschka FY2013. All others in Sandra Cinq-Mars Michael Murchison Michael Warshafsky Nicholas Klimchuk FY2014. Jacqueline Cook Sepand Norouzi Steven Wellman Layan Kutob Cheryl Cui Owen Ou Jane Wu ALUMNI SUCCESS ALUMNI SUCCESS

Left: Stephen Lake (N36 Alumnus, 2011), Co-Founder of Thalmic Labs Top Right: Konrad Listwan-Ciesielski and Emilie Cushman (N36 Alumni, 2012), Co-Founders of Kira Talent Bottom Right: Omer Dor (N36 Alumnus, 2012), Co-Founder of Mobicare

Thalmic Labs Kira Talent Mobicare Thalmic Labs is building the future Kira Talent is a video interviewing MobiCare is a mobile health platform of wearable technology, starting with platform with over 20 major enterprise focused on assisting and empowering the MYO armband that pre-sold over and education customers in more than families and caregivers of those 30,000 units in 146 countries. After 80 countries. In 2013, Kira secured 2 with Alzheimer’s disease and related completing Y-Combinator in 2013, Co- rounds of seed investment - both led dementia. In April 2013, MobiCare Founder Stephen Lake (N36 Alumnus, by Relay Ventures - totaling more than was acquired by Ohio-based Masonic 2011) closed a $14.5M round of Series $2 million. Aging Services Corporation, marking A funding, grew to 40 employees and the first exit of a N36 venture. kiratalent.com a 20,000 sq. ft Waterloo o"ce. @KiraTalent mobicarehealth.com thalmic.com @GoMobiCare @thalmic

91% 83% 62% 13 Alumni plan to Working on or Currently Founding 3rd Party Give Back to the for a Start-Up a Business Funded Alumni Program Ventures 44%

Other Successful Ventures: 42 - Cathy Han (2011), FastRack - Mitchell Lesbirel (2011), Fleetbit – Krista Caldwell, Aidan Nulman and Yilun Zhang (2011), M5Labs – Michael Schmidt (2011), Donor IQ - Rafal Dittwald and Jane Wu (2012), Kaizena – Max Brodie and Edward Sun (2012), Atlus – Michael Murchison and Alex Litoiu (2012)

ANNUAL REPORT 2013 16 FINANCIAL STATMENTS FINANCIAL STATEMENTS

November 8, 2013

Independent Auditor's Report

To the Directors of The Next 36

The accompanying summary financial statements, which comprise the summary statement of financial position as at August 31, 2013 and the summary statement of operations and changes in net assets for the year then ended, and related notes, are derived from the audited financial statements of The Next 36 for the year ended August 31, 2013. We expressed an unmodified audit opinion on those financial statements in our report dated October 23, 2013. Those financial statements, and the summary financial statements, do not reflect the e!ects of events that occurred subsequent to the date of our report on those financial statements.

The summary financial statements do not contain all the disclosures required by Canadian accounting standards for not-for-profit organizations (ASNPO). Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of The Next 36.

Management's Responsibility for the Summary Financial Statements Management is responsible for the preparation of a summary of the audited financial statements in accordance with the basis described in the note to the summary financial statements.

Auditor's Responsibility Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standard (CAS) 810, Engagements to Report on Summary Financial Statements.

Opinion In our opinion, the summary financial statements derived from the audited financial statements of The Next 36 for the year ended August 31, 2013 are a fair summary of those financial statements in accordance with the basis described in the note to the summary financial statements.

Comparative Information As described in our report dated October 23, 2013, The Next 36 adopted Canadian accounting standards for not-for- profit organizations on September 1, 2012, with a transition date of September 1, 2011. These standards were applied retrospectively by management to the comparative information in the audited financial statements. We were not engaged to report on the restated comparative information under Canadian accounting standards for not-for-profit organizations, and as such, it is unaudited.

PricewaterhouseCoopers LLP Chartered Professional Accountants, Licensed Public Accountants Toronto, Ontario

Note to Summary Financial Statements August 31, 2013: Applied criteria in preparation of the summary financial statements are as follows: a) The information in the summary financial statements is in agreement with the related information in the complete financial statements; and b) The summary financial statements contain the information necessary to avoid distorting or obstructing matters disclosed in the related complete financial statements, including the notes thereto. Complete audited financial statements, including the related notes to the financial statements, are available from: [email protected]

17 ANNUAL REPORT 2013 FINANCIAL STATMENTS

Statement of Financial Position 2013 2012 As at August 31, 2013 $ (unaudited) $

Assets Current Assets Cash 3,868,902 4,305,702 Donation Receivable 110,000 50,000 Grants Receivable 105,000 35,368 Sundry Assets 37,417 44,422

$4,121,319 $4,435,492 Investment in Cohort Ventures 78 118 Property and Equipment 35,053 36,029

$4,156,450 $4,471,639

Liabilities Current Liabilities Accounts Payable and Accrued Liabilities 72,796 56,883 Grants Repayable - - Deferred Revenue - 129,044

72,796 $185,927 Deferred Lease Inducements 12,778 12,926

$85,574 $198,853 Net Assets Unrestricted Net Assets 4,070,876 4,272,786

$4,156,450 $4,471,639

Statement of Operations Year Ended Year Ended and Changes in Net Assets Aug 31, 2013 Aug 31, 2012 $ (unaudited) $

Revenue Grants 259,093 3,553,788 Donations 1,121,080 1,975,464 Other Revenue 63,995 53,152

$1,444,168 $5,582,404 Expenses Sta! and Faculty 957,332 706,739 Academic Block and Team Ventures 272,876 274,188 Administration 220,418 169,136 National Selection Event 89,616 81,129 Advertising and Promotion 95,035 63,132 Fundraising 10,801 4,294

$1,646,078 $1,298,618

Excess (Deficiency) of Revenue over Expenses for the Year $(201,910) $4,283,786 Unrestricted Net Assets (Deficiency) - Beginning of Year $4,272,786 $(11,000)

Unrestricted net assets - End of Year $4,070,876 $4,272,786

ANNUAL REPORT 2013 18 N36 board member and donor Charles Field-Marsham with entrepreneur Cham Mungoshi and Rita Field-Marsham.

"Today’s business owners have a responsibility to train and mentor tomorrow's entrepreneurs. I’m thrilled we're the first B.C. company to lend support and working with like-minded leaders, expect the program to grow into ‘The Next 3,600!’"

- John O'Neill, President & ENTREPRENEURS' CIRCLE CEO, O’Neill Hotels & Resorts Ltd. The Entrepreneurs’ Circle is an exclusive group of business leaders who each support one young entrepreneur in The Next 36 per year.

Richard Abboud Steve Gupta Reza Satchu Blue Goose Pure Foods Knightsbridge Human Som and Kerry Seif Charles and Rita Field- Capital Solutions Roderick Senft and Marsham Foundation Jon and Nancy Love Family James Eaton O’Neill Hotels and The Sullivan Family Scott Gri"n Resorts Ltd. Foundation

Contributing Gifts Our 2013 success would not have been possible without the tremendous support from the following in-kind donors: PARTNERS PARTNERS

N36 investor John Albright and donor Tim Price meet N36 entrepreneur Michael Cheng at Venture Preview Night.

The Next 36 is grateful for the continued support from our extraordinary National Partners:

Ernst & Young provides N36 ventures TD Bank provides small business bank Rogers provides telecommunications access to professional services, media accounts, banking solutions, financial support and networking opportunities training and networking opportunities services and advice to N36 ventures. to The Next 36 and its entrepreneurs. including Entrepreneur of the Year They also support The Next 36 Senior leadership annually hosts The events and media breakfasts. internship program. Next 36 at a Toronto Blue Jays game.

“The Next 36 is the best organization in

MaRS provides venues for key N36 Osler provides The Next 36 and its the country for future events including Venture Day and ventures with legal expertise and Selection Weekend. Ventures receive workshops on a range of topics such entrepreneurs.” access to in-depth market research, as privacy, incorporation, contracts, the MaRS network and invitations to financing and intellectual property. – John Albright, Co-Founder & key events in the start-up community. Managing Partner, Relay Ventures

Investment Partners

ANNUAL REPORT 2013 20 Young entrepreneurs Jeremy Wang, Lauren Long and Owen Ou share their latest work with Chris Erickson at the 2013 Stakeholder Event.

"Mentoring with The Next 36 is incredibly rewarding. Where else in Canada can you engage with smart, passionate young entrepreneurs who are creating rare-air results?"

- Andrea Matheson, CEO, Sapphire Digital Health Solutions Inc MENTORS and Mentor, The Next 36 Bram Belzberg Jay Forbes Elaine Kunda CEO, KEV Group Former President & CEO, Independent Consultant Teranet Inc. Sarah Prevette Charles Benaiah Peter LaMantia Founder, Sprouter.com CEO, The 1dea Group Gordon Forsythe CEO, Authentic Web Inc. Co-Founder, Compass Brad Ross Andrew Black Capital Jason Martin Angel Investor, New Venture Coach Managing Partner, Catherine Graham President & CEO, Iotum Blackpoynt Brand Ventures Mark Ruddock Managing Director, David Masotti RIGHTSLEEVE CEO, Wongo Canada Charlotte Burke Co-Founder & Executive Independent Board Member, Chairman, Defyrus Inc. Advisor, Polar Mobile, Dean Hopkins Matt Saunders Horizon Studios CEO, Osprey Labs Inc. Andrea Matheson President, Ryerson Futures Inc. CEO, Sapphire Digital Randy Cass Michael Johnston Health Solutions Inc. Founder, Orchard Asset President & CEO, Vicki Saunders Management TeamSpace Ryan Poissant Senior Advisor, MaRS Discovery District Senior Advisor, MaRS Wayne Chang Krista Jones Discovery District President, Pivotry Education Innovation Lead, Jason Tafler Consulting Group Inc. Senior Advisor ICE, MaRS John Poulos Chief Digital O"cer, Discovery District Rogers Communications President & CEO, Dominion Philip Deck Voting Systems CEO, Extuple Inc. Satish Kanwar Mark Zimmerman Director of Operations, Senior Advisor, MaRS Toronto, Shopify Discovery District FOUNDING PATRONS OF THE NEXT 36 FOUNDING PATRONS OF THE NEXT 36

In Memoriam – The Honourable Paul Desmarais (1927-2013) In 2013, Canada and The Next 36 lost Paul Desmarais Sr., one of the country's great entrepreneurs, business leaders and W. Galen Hon. Paul Jimmy philanthropists. Mr. Desmarais, the chairman of the executive committee of Power Corp. Weston Desmarais Pattison of Canada, was a Founding Patron of Chairman & Executive Chairman & Chief The Next 36, along with W. Galen Weston President, George Committee Executive O"cer, and Jimmy Pattison. We mourn the loss Weston Limited Chairman, Power The Jim Pattison of this great Canadian. Corporation of Group Canada

BOARD OF DIRECTORS

Ajay Samuel Tim Patrick Nadir Francis Agrawal Duboc Hodgson Meneley Mohamed Shen Peter Munk Co-Founder Managing Partner, Vice Chair, President Chairman Professor of & Partner, Alignvest Capital Head of Global & CEO, Rogers & Co-Chief Entrepreneurship, EdgeStone Management Investment Communications Executive University of Capital Partners Banking, TD Inc. O"cer, Aastra Toronto, Rotman Chairman of the John Securities & Technologies Ltd. School of Board, Pathways Executive Reza Management to Education Kelleher Vice – President, Senior Vice- Satchu Ilse Canada Wholesale Treurnicht Joseph President, Banking, TD Bank Managing Partner, Brookfield Capital Financial Group Alignvest Capital CEO, MaRS Canavan Charles Partners Management Discovery District Chairman & Field- Interim CEO, Marsham Anthony Children's Aid Executive Lacavera Foundation Chairman, Chairman & "The Next 36 plays a critical role Panafrican Group CEO, Globalive Paul Holdings and in teaching young Canadians to Desmarais Scott WIND Mobile dream big and follow with execution. Risk Management Gri"n Group, Great Chairman, Rebecca Fascinating businesses are born in 9 West Life General Kinetics MacDonald Engineering months, many don't survive, but the Executive Chair Julie Corporation of the Board, Just learning and lessons are permanent. Di Lorenzo Energy Group Inc. President, Claudia This program is shaping the next Diamante Urban Hepburn Corp. generation of Canadian leaders." Executive Director, – Paul Desmarais, Board of Directors, The Next 36 The Next 36

ANNUAL REPORT 2013 22 WHO IS INVOLVED WHO IS INVOLVED

Founding Patrons Major Donors Event Sponsors Stephen Lake Keith MacDougall ($25,000 - $99,999) W. Galen Weston CISCO Systems Canada Inc. Christopher Sanz Jimmy Pattison John Dobson Foundation Communitech Jamie Schneiderman The Hon. Paul Desmarais John Donald Shopify Breanne Stewart Donner Canadian Geo! Taber Academic Foundation In-Kind Donors Robert Thompson Partners Claudia Hepburn Air Canada James Tucker University of Toronto The Medcan Clinic Bob’s Your Uncle Lee Webster (Founding) Nadir Mohamed Caliper Canada Daniel Wong The University of British Tim Price CISCO Systems Canada Inc. Columbia SAP Canada Clark Stanley's Creative Speakers McGill University Consortium Contributing Nicole Almond Queen's University Crashlytics Jordan Banks Ryerson University Donors Dare Foods Conrad Black Simon Fraser University ($10,000 - $24,999) Ernst & Young Eric Boyko Kiwi Wearables University of Waterloo CISCO Systems Canada Inc. Janet Carding MaRS Western University Cougar Global Investments Randy Cass Martha Fisher Tim and Linda Hodgson Jean Chretien Google Canada Leadership Lee and Margaret Lau Paul Desmarais Stephanie Lake Donors ($100,000+) Mentorship Wealth Julie Di Lorenzo Photography Diamante Development Management Haig Farris Navigator Corporation MoneyBites Media Inc. Joel Feldberg Osler, Hoskin & The W. Garfield Weston Tompkins Insurance Saul Feldberg Harcourt LLP Foundation Services Ltd. Charles Field-Marsham Pebble Jennifer Ger Entrepreneurs' Other Donors The Printing House Dennis Kavelman Rackspace Hosting Circle ($75,000) Brendan Calder John Kelleher Rogers Communications Michael Lee-Chin Richard Abboud Stephen Coxford Jennifer Rowsom James Lochrie Blue Goose Pure Foods Daniel Debow and Sussex Strategy Group Rebecca MacDonald The Charles and Rita Field- Jordana Huber Thalmic Labs Chris O’Neill Marsham Foundation Eleanor and Francis Shen The Rolex Boutique Matt Saunders James Eaton Family Fund at Royal De Versailles Albert Schultz Scott Gri"n Anthony R. Graham TRISTAN Brian Scudamore Steve Gupta Tim and Lana Hockey Wave Som Seif Knightsbridge Human Vahan and Susie Kololian Judy Sims Capital Solutions Nancy Lockhart Workshops Mark Smith Jon and Nancy Love Andy and Lynn Nulman Chad Bayne Je! Speak O’Neill Hotels and John and Amanda Erika Bennett Brian Stewart Resorts Ltd. Sherrington Ron Bremner Matthew Teitelbaum Reza Satchu Mark and Lisa Smith Erin Engelhardt Mark Wiseman Som and Kerry Seif Je! Speak and Dr. Patricia Michael Fekete Roderick Senft and Family Bortoluzzi Jim Gray Advisory The Sullivan Family Bill Young Simon Hodgett Foundation Resources Tanja Jacobs Alex Baker Simon Jalbert Andrew Black

NATIONAL PARTNERS GOVERNMENT SUPPORTER

23 ANNUAL REPORT 2013 WHO IS INVOLVED

Carrie Bois Alumni Speakers Matthew Leibowitz Selection Jonathan Breido Christiane Lemieux Weekend Richard Bruno Shire Brandi Connie Linder Brendan Calder Zerzar Bukhari Nancy Lockhart Volunteers David Berkal Jacquelyn Cyr Emilie Cushman Selma Lussenburg Steve Buzinski Dan Debow Anthony Darcovich Adam Massey Jacqueline Cook Mike Dover Rafal Dittwald Vivek Mehta Emilie Cushman Frank Falcone Omer Dor Andy Nulman Emily Dimytosh Mary Federau Jessica Fan Loudon Owen Omer Dor Bob Froese Victoria Hale Adam Panasiewicz Scott Greenberg Jennifer Ger Salima Hirji Dray Perenic Price Melissa Holoday Brett Girard Simon Jalbert Andre Perey Simon Jalbert Hal Gould Samantha Juraschka Jennifer Rade Konrad Listwan-Ciesielski Edward Greenspon Saumya Krishna Margaret Ramsdale Liz Lyons Michael Hershfield Layan Kutob Neil Seeman Dan McCann John Horwood Stephen Lake John Sherrington Anne-Marie Paquette Anna-Maria Kane! Mitchell Lesbirel David Smith Dray Perenic Price Naeem Lakhani Konrad Listwan-Ciesielski Teresa Snelgrove Philippe Vennes Peter LaMantia Dan McCann Kwan Song Jane Wu Mary Larson Michael Murchison Rick Spence Nadeem Nathoo Matthew Leibowitz Helen Stevenson Audit Connie Linder Anne-Marie Paquette Ali Tehrani Jacoline Loewen Jade Proulx David Turner Committee Henry Long Parvinder Sachdeva Colin Webster Joseph Canavan Vernon Lun Je! Wandzura Jeannette Wiltse Patrick Meneley Selma Lussenburg Jane Wu Mark Wiseman David MacPhie Interviewers Julie Morton Application Sta! Judges Ajay Agrawal John O'Dwyer John Albright Christian Catalini Tom Reeves Alex Baker Tony Buonaguro Rafal Dittwald Gary Rubino! Amy Baryshnik Christian Catalini Annick Dufort Daniel Sawaya Tony Buonaguro Julia Deans Jon French Dev Saxena Brendan Calder Rafal Dittwald Joy Gooding Judy Sims Wayne Chang Peter Doyle Claudia Hepburn Kwan Song Malkin Dare Claudia Hepburn Christian Lassonde Andreas Souvaliotis Dan Debow Tim Hodgson Gillian Nation Neil Spivack John Donald Christian Lassonde Danielle Smith Helen Stevenson Frank Falcone Lisa Mierins Smith Fil Varino Jason Tafler Haig Farris Jennifer Nashmi Colin Webster Denise Figueiredo Andy Pringle Interns Amy Fisher Reza Satchu Dami Dina Alumni John Francis Daniel Sawaya Julien LaPointe Co-Presidents Bob Froese Stephen Shea Samantha Juraschka Leslie Gales Mark Smith Aidan Nulman Eileen Greene Victoria Sopik Ann Kaplan Helen Stevenson Barrie Laver Joanne Thomsen

MARTHA FISHER, STEPHANIE LAKE, JENNIFER ROWSOM

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