New ONB Funding Policies Will Give Early Stage Startups More Money To Grow
MONCTON– A challenge for many early-stage companies in New Brunswick is securing growth capital, but two new funding policies announced Thursday by Opportunities New Brunswick (ONB) might help with that.
ONB announced new Seed and Series funding policies designed to augment capital raised for certain early stage and high-growth companies.
“Supporting entrepreneurship is one of our primary objectives,” said Stephen Lund, CEO of ONB, in a release. “In addition to working with our approved partners in supporting New Brunswick startups, we hope to attract additional investors from outside the province to enhance our growing startup ecosystem.”
The Seed and Series A funding policies will operate as “sidecar” funds in conjunction with funding from approved partners.
Under the Seed funding policy, Opportunities New Brunswick can invest up to $500,000 in a company in the initial stages of the startup cycle. A maximum of $2-million is available per year from the fund. The Series A funding policy allows the crown corporation to invest up to $1-million in a company that has recently passed the startup phase and is generating or is about to generate revenue. A maximum of $5-million per year is available from the fund.
The Series A funding policy allows the crown corporation to invest up to $1-million in a company that has recently passed the startup phase and is generating or is about to generate revenue. A maximum of $5-million per year is available from the fund.
One of ONB’s approved funding partners is Saint John-based startup accelerator and angel investor group East Valley Ventures.
“East Valley is excited and committed to the growth of the export innovation economy,” said Jeff White, chief operating officer of East Valley Ventures. “The companies we work with are focused on innovation and growth to enhance economic prosperity in New Brunswick and Atlantic Canada. This program aligns private and public capital, filling a void in the current marketplace.”