The Business Development Bank of Canada has invested in the Atlantic Canada Regional Venture Fund, set up to finance start-up companies in the IT, clean energy and healthcare sectors, through its venture capital arm.
The Business Development Bank – Canada’s largest institutional venture capital investor – has committed $10m to the fund, which has so far garnered $50m.
The fund is now actively seeking investment candidates throughout the Atlantic Provinces.
‘There are many great ideas in the Atlantic Provinces waiting to become great companies,’ said Dominique Bélanger, a director in BDC Venture Capital’s Strategic Investments and Initiatives division, who negotiated the deal.
‘And there are talented and motivated entrepreneurs too. The fund’s job now is to find the most promising start-ups and support their growth.’
The Atlantic Canada Regional Venture Fund is a privately-managed seed and early stage fund jointly initiated by the governments of Nova Scotia and New Brunswick.
Launched in November 2010, it has a series of commitments from local governments as well as the privately-owned Technology Venture Corporation.
It expects to hold a first close in early 2013 between $50m and $60m, and will continue fundraising but has not publicly released its target.
Selected technology companies will be provided with funding between $1m and $5m to finance product development and commercialisation.
Bélanger said, ‘The fund will complement the current active investors in the region, as well as serve as a co-investor of choice for out-of-region funds.’
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