A chronic shortage of early-stage angel and venture capital investment in Canadian digital content has produced a novel source of financing to get new innovations off the ground: former top TV executives.

Nathan Gunn, CEO of game producer Social Game Universe, recently told an Interactive Ontario iLunch panel that few Canadian VC investors are completing major investment deals these days.

But his company has landed financing from industry veterans like former CHUM-turned-Zoomer Media head Moses Znaimer, Nelvana co-founder Clive Smith, Standard Radio’s Gary Slaight, Score Media’s John Levy and U2 concert promoter Michael Cohl.

‘Here’s an interesting group of guys who understand the content business and do make gut bets,’ he told the panel on digital content financing.

‘What unites Gunn’s angel investors is all cashed out of major Canadian TV companies when they were bought up by rivals, and now need to invest their riches.’

Ted Werth, a business consultant with Injenius Projects, told the iLunch panel that a pullback by traditional angel investors and VCs has created an opening for Canadian TV innovators looking to straddle new platforms.

Another recent syndicate deal saw former TV players including Ted Riley, Jay Switzer and Gary Slaight jointly invest in GlassBox TV, a cross-platform broadcaster.

Another untapped financing source for Canadian digital start-ups is the Ontario Media Development Corporation’s new one-year $10 million Intellectual Property Development Fund that refunds 30% of costs (up to $150,000) absorbed by indie producers.

OMDC director of tax credits and financing Jennifer Blitz said the fund, launched in December, has only received 25 applications from digital content producers who have barely tapped $1 million of the available funds.

Blitz added interest in the pilot development fund is quickly building. Yet, non-juried grants from the IP fund are still to be doled out.

‘There’s still plenty of availability. We want to get the word out,’ she said.

The panel audience was told that, but for the OMDC IP fund and the upcoming Canada Media Fund, few sources of public subsidies focus on convergent digital product, and instead target specific product in the development or production phases.

Gunn cautioned producers not to get bogged down pursuing tax credits, and instead to pursue big-picture business goals.

‘You’re spending time completing a lengthy tax credit document that isn’t your business plan,’ he cautioned.