A so­cial-minded startup won­ders whether to be­come a not-for-profit or a for-profit en­ter­prise.

National Post (Latest Edition) - Financial Post Magazine - - COLUMNS&DEPARTMENTS -

The sit­u­a­tion: Star­tups that have a so­cial pur­pose at their core have a very im­por­tant de­ci­sion to make about their cor­po­rate struc­ture: be­come a not-for-profit or a for-profit en­ter­prise. The dis­tinc­tion is im­por­tant be­cause it helps de­fine how en­trepreneurs raise money and sign part­ners in the short term, and it will also im­pact their de­ci­sions for years to come. Sarah Drew, founder and CEO of Every1Games, was fac­ing just such a de­ci­sion as her startup was ready to exit Ry­er­son Univer­sity’s in­cu­ba­tor space. Every1Games had al­ready mor­phed from a small one-night gamede­vel­op­ment work­shop for a group of five autis­tic teenagers to an on­go­ing con­cern that was part­ner­ing with schools and, po­ten­tially, clients who would pay for their chil­dren to at­tend skill de­vel­op­ment work­shops. “Given that I’m ea­ger to sign a few con­tracts, we have to de­cide what kind of en­tity we’d like to be,” Drew said.

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