More venture capital will be available to technology startup companies in Nova Scotia and the rest of Atlantic Canada with the creation of two private-sector venture capital funds.
“Having a vibrant technology sector is an important part of our economic future and building a stronger province,” said Business Minister Geoff MacLellan. “Making more venture capital available to startups at various stages of their development will give entrepreneurs the support they need to build great companies, and create jobs across this province.”
Government will invest $15 million in a new venture capital fund to help later stage startups continue to grow. Build Ventures has been selected to manage the fund, on the condition it will attract other investors. The targeted size for the new fund is $50 to $75 million.
Government will also invest $10 million in a new private-sector venture capital fund for early stage companies.
This approach was recommended to government by the selection committee responsible for evaluating responses to Innovacorp’s 2016 request for fund management proposals to oversee $25 million in venture capital funding.
“Build Ventures already plays an essential role in developing Nova Scotia’s venture capital ecosystem, and moving forward it will be able to continue to provide follow-on capital for the most promising startups in Atlantic Canada,” said Gilles Duruflé, a selection committee member and consultant for venture capital and private equity funds and governments across Canada. “To ensure Nova Scotia’s startup community continues to grow, it is also important to bring a new private-sector-managed fund to the region to support early stage companies.”
The selection committee will continue its work to establish the two funds, including determining the process for choosing the second fund’s manager.