Industry · Manufacturing & automotive supply
Capital for the $1M–$25M shop that is too small for mezzanine and too big for a CFDC loan.
- Tool & mould · machining · stamping · automation
- $50K–$5M per company
- Diversification & equipment
- Members who ran plants
Blue Ring Venture Capital members provide growth, equipment, turnaround and succession capital of $50K–$5M per company to manufacturers — including pharmaceutical and other regulated manufacturing — and automotive suppliers with $1M–$25M in revenue across Windsor-Essex and Southwestern Ontario. The capital is equity or quasi-equity behind your bank, often the private match for FedDev Ontario, SWODF or AMIC, and it comes with a member who has run a plant.
This page is an example, not a filter
Our members look at companies in most sectors; the short list of exceptions is in the FAQ. This page exists because several of them have run businesses in this industry, which is where they can help fastest and judge hardest. If your company is in something else entirely and not on that list, apply anyway — every application is read on its own numbers, its own plan and whether a member can genuinely be useful.
The 2026 problem
Tariff relief came as loans. Diversification needs equity.
Windsor-Essex manufacturers said publicly in May 2026 that the federal tariff-relief loans "fall short" because they are debt on top of debt. Diversifying away from a single OEM or a single border crossing — into defence, energy, medical or non-automotive industrial work — means new certifications, new tooling, new salespeople and a year of thinner margins before it pays. Lenders do not finance that; they finance the machine.
FedDev Ontario's enhanced Regional Tariff Response Initiative, SWODF and AMIC all require proof of private matching capital, as do several of the current federal investment initiatives. Member capital is that match, and it comes with people who have re-quoted a plant's book of business before.
- Customer concentration above 40% is the first thing members will ask about
- Quoting discipline: win rate, margin by job, who signs off below cost
- Capacity utilization by shift and bottleneck machine
- Succession depth: who runs the floor when the owner is at the customer
Typical asks members see
- Second CNC cell + tooling + operator: $450K–$900K project, $250K equity
- ISO 13485 or AS9100 to enter medical or aerospace: $150K–$300K
- Automation cell to replace a shift you cannot staff: $600K–$1.2M
- Partial sale by a 62-year-old owner with a strong plant manager: 25–35%
What our members look for in a $1M–$25M manufacturer
The short version of the 20-point checklist. None of these is a knockout on its own; together they decide whether the conversation moves quickly.
- Three years of statements with gross margin above 25%
- No single customer above 40% of revenue, or a plan to get there
- A quoting process someone other than the owner can run
- Documented quality system (IATF, ISO 9001 or a credible equivalent)
- Machine utilization and downtime tracked, even on paper
- A plant manager or lead who can run a week without the owner
- Tooling ownership clear — yours, the customer's, or a mix, in writing
- Tariff and FX exposure mapped by customer and input
- Maintenance and capex history, not just the wish list
- A realistic view of what the next tranche of capital buys and when it pays
Structures that suit a shop's cash cycle
Preferred shares with a dividend that starts after commissioning, or a shareholder loan with warrants, are typical. Members do not take security on equipment; the equipment lender does.
Preferred shares with a dividend and buy-back right
Cash yield from year 1–2, redemption after 5–7 years.
Revenue-based note
A fixed share of monthly revenue until a 1.5–2× cap.
Shareholder loan with warrants
Interest plus a small equity kicker.
Majority or 50/50 equity
Majority or 50/50 equity — succession, turnaround or partner buyout.
Bridge loan with an equity stake
Bridge loan with an equity stake — a defined gap to cross, repaid from cash flow, with a share of the upside.
Also possible: Common shares (Minority equity — the owner stays in charge. Only with a clear path to an exit or buy-back); Convertible note / SAFE (Startup track only). Every deal is negotiated directly between you and the individual members who take part.
Manufacturer questions
We are 90% automotive. Is that a problem?
It is the situation most shops in Southwestern Ontario are in, and it is why members care about a diversification plan rather than penalizing the starting point. A credible path to 60–70% automotive over three years, with a first non-automotive customer identified, is what members want to see.
How do you compare with BDC?
BDC Growth & Transition Capital starts around $250K and suits larger, more mature companies with a clean track record. Members often sit below or beside it, and refer up when a company is too big for them or its needs are purely debt-shaped.
Do you understand tooling programs and PPAP timelines?
Members have lived them. Expect questions about tooling payment terms, program launch timing and how much of your revenue is launch-dependent this year.
Do you look at pharmaceutical or other regulated manufacturing?
Yes. Pharmaceutical, medical-device and other GMP-regulated manufacturers are inside the criteria. Expect questions about validation status, the maturity of the quality system, inspection history, customer and supply contracts, and what the next scale-up really costs in equipment, people and time.
Do you only look at manufacturing?
No. This page exists because several members have run plants, so it is where they can be most useful fastest — but it describes experience, not a filter. The group looks at most sectors — the short list of exceptions is in the FAQ — and reads every company on its own numbers and plan.
Talk to members who have run a business like yours
Fifteen minutes to apply. A named person replies within 48 hours.
Written by The Blue Ring Venture Capital team. Last reviewed .
Out of date, or wrong? Tell us.