HALIFAX — Nova Scotia’s government has plans to put another $25 million into two venture capital funds, with the expectation that other Atlantic provinces and private investors will join it as well.
Innovacorp Inc., a Crown agency that already has invested in a $65-million regional venture capital fund started in 2013, announced today plans to put a second round of investment into startup firms in Atlantic Canada.
The agency says it will commit to $15 million to be invested by manager Build Ventures, with the expectation that New Brunswick, Newfoundland and Labrador, Prince Edward Island and a private venture capitalist will become partners in a fund that is hoping to raise between $50 million and $75 million for investments.
There is also a plan to invest a further $10 million in another venture fund, though a manager hasn’t yet been chosen.
Venture capital funds typically start rounds of investment at the mid-point of an existing portfolio of investments, in part to ensure the continued existence of the current fund and its management.
The first round of investments has put money into 14 Atlantic firms, many of which are still in their early stages, with about 55 per cent of the original $65 million flowing to the companies to date.
The Canadian Press