High-potential companies in Atlantic Canada now have more access to the funds they need to grow and compete in the international marketplace.
Build Ventures, a privately managed venture capital fund, launched today, and is actively seeking investment opportunities throughout the Atlantic provinces.
“In order to grow the economy, we have to give businesses the tools they need to be successful,” said Premier Robert Ghiz. “Our combined investment in this venture capital fund will help companies realize their full potential, here in Prince Edward Island, and throughout the Atlantic region.”
Patrick Keefe and Rob Barbara will manage the fund. Mr. Keefe has more than 15 years of investment and entrepreneurial experience. He spent the last several years with Innovacorp, overseeing its early-stage venture capital activities.
Mr. Barbara is also a seasoned investment manager. Most recently, he spent 11 years with Burgundy Asset Management, a Toronto-based global investment management firm serving private clients, foundations, endowments, pensions and family offices.
“We're really encouraged by the start-up activity we've been seeing in Atlantic Canada over the last few years,” said Mr. Keefe. “We look forward to backing – and then working closely with – the most promising entrepreneurs as they build game-changing companies.”
The provincial governments of New Brunswick and Nova Scotia are each contributing $15 million to the venture capital fund with Prince Edward Island contributing $2.5 million. These commitments have leveraged additional funding from BDC Venture Capital ($10 million), Technology Venture Corporation, a Moncton-based private sector company, ($5 million), and the fund managers ($1 million). Build Ventures will look to raise additional private sector investment in the coming months.
“The Business Development Bank of Canada is pleased to see Build Ventures getting off the ground. This fund will help finance Atlantic Canada’s most promising and innovative start-ups,” said Jean-Renée Halde, President and Chief Executive Officer of BDC. “Our venture capital arm, BDC Venture Capital, has seen concrete examples of the region’s high tech potential recently with companies like Radian6 and Q1 Labs. The future certainly looks very promising.”
Headquartered in Halifax, Build Ventures will concentrate on making Series A investments. These are investments made in companies that are early stage yet have an established business model, a solid team, a large target market, and some revenue generation, and now need ramp-up capital. The focus will be on companies in information technology, clean technology, life sciences and other high-growth sectors. Build Ventures' investments will be between $1 million and $5 million for each venture.