Venture Capital Support for Emerging Atlantic Canadian Companies
June 6, 2011
On June 5, 2011, Nova Scotia and New Brunswick announced they will fund a new, privately operated, regional venture capital fund designed specifically to support emerging companies throughout Atlantic Canada.
For high potential companies that do not yet have the cash flow to secure financing from traditional lenders, a venture capital fund is critical in the early stages of their business development. Investment is especially important for businesses that provide innovative products or services. Recognizing this, the provinces have designed the fund to target companies throughout Atlantic Canada that are involved in clean technology, life sciences, and information technology and other high growth sectors.
In April of 2011, the Province of Nova Scotia committed $15 million in the 2011-12 Budget to create the regional venture capital fund. Since this announcement, Nova Scotia has been actively trying to expand the fund. Nova Scotia’s premier approached federal colleagues and fellow Atlantic premiers for support. Last week, the Province of New Brunswick committed to contribute $15 million to the fund. Now, both Nova Scotia and New Brunswick plan to continue to work with private-sector partners, institutional investors, and the federal government to ensure the companies with the most potential can compete.
In addition to the regional venture capital fund, in April 2011, the Nova Scotia Premier’s Office announced the launch of a fund for emerging companies in the clean technology industry. Nova Scotia injected $24 million into a fund developed to provide increased access to capital for companies involved in clean technologies such as renewable energy, energy efficiency, air and water quality solutions, and recycling. This fund is managed by Innovacorp, Nova Scotia’s technology commercialization agency. Innovacorp follows an internationally recognized approach to technology commercialization known as the High Performance Incubation business model. This model will be used to drive company performance through progressive funding as each company meets their respective operational milestones.
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