Technology Venture Corporation, a Moncton-based company, is the first private company to join three provincial governments in a regional venture capital fund.
Connecting smart, innovative companies with the venture capital they need to create jobs and grow this region's knowledge economy is a key part of our plan to rebuild New Brunswick,” said Premier David Alward. “I welcome the company to this strong regional partnership. Together we are breaking new ground and creating the conditions for accelerated growth in our communities.”
Technology Venture Corporation, a private venture capital and investment holding company, will contribute $5 million to the regional venture capital fund, bringing the value to $37.5 million. The fund is designed to support high-potential companies in Atlantic Canada.
“In our experience, access to capital represents one of the most significant challenges for Atlantic Canada's emerging companies,” said Jon Manship, chairman of the board of Technology Venture Corporation. “As a region, we have the ideas and the entrepreneurial talent to execute them but one of the issues inhibiting sustained growth is a lack of venture capital. We are pleased to participate as the lead private investor in supporting this important initiative to begin to address this challenge.”
Atlantic Canadian companies involved in clean technology, life sciences, information technology and other high-growth sectors are eligible to benefit from the fund which will help emerging companies that do not yet have the cash flow to secure financing from traditional lenders.
The provincial governments of New Brunswick and Nova Scotia are each contributing $15 million to the fund and Prince Edward Island is contributing $2.5 million.
"This fund will help new companies access the capital they need to grow, create jobs, and take advantage of the great opportunities coming to Atlantic Canada, like shipbuilding," said Nova Scotia Premier Darrell Dexter. "Our region has a lot going for it right now. Working together, we will make the most of those opportunities to create the innovation and growth that lets families put down roots and thrive right here."
Innovacorp, Nova Scotia's venture capital and technology commercialization corporation, has been working on behalf of the three provinces to set up the fund and secure additional investors. A search for a fund manager has been completed, the results of which will soon be announced.
The three provinces and Innovacorp will continue to work with private-sector partners, institutional investors and the federal government to ensure that companies with the most potential can compete.
For more information, contact:
Office of the Premier
Department of Economic Development
Fredericton, New Brunswick, October 9, 2012