N.B. Government Contributing $10 Million To Atlantic Canadian VC Firm
FREDERICTON– The New Brunswick government announced this week that it was contributing to a private venture capital firm out of Halifax.
The province is contributing $10 million to Build Ventures, Atlantic Canada’s largest venture capital fund. The Halifax-based venture capital firm invests in startup technology companies in the Maritimes.
The $10 million will go into a fund called Build Ventures Fund II, which is a blend of private and public sector capital which provides early-stage capital to emerging technology companies in Atlantic Canada.
“Our province has a thriving startup community and our entrepreneurs play a critical role in growing New Brunswick’s economy and creating jobs,” said Economic Development Minister Francine Landry, who is also the minister responsible for Opportunities NB, in a news release. “Your government has made supporting entrepreneurship a primary objective, which is why it is important that we help foster the innovation and creativity of New Brunswick businesses with the financing they need.”
Companies involved in clean technology, life sciences, information technology and other high-growth sectors will be eligible to access the fund. Build Ventures will invest in companies that are still early stage, but have an established business model, a solid team, and a large target market. Ideal companies are those that are generating revenue and now need ramp-up capital to expand even further. Investments will generally be between $1 million and $5 million for each venture.
“Access to early-stage capital is vital for New Brunswick’s startup community, and we are grateful that the Province of New Brunswick has joined with other public and private sector partners to support the next wave of startups by participating in Build Ventures Fund II,” said Rob Barbara, general partner of Build Ventures.
This is the second regional venture fund to be managed by Build Ventures. Its $65-million Fund I made investments in five New Brunswick companies. Early backing from Build Ventures opened the door to other funding for Fredericton-based Resson, which has now received nearly $28 million in two rounds of venture capital investment since 2016.
“Support from Build Ventures has been an important part of our success,” said Resson CEO Jeff Grammar, in a release. “They were with us in the early days and they have provided more than capital, offering advice and helping us make connections to other investors, partners and customers. A second Build Ventures fund is great news for New Brunswick. They are vital to the continued development of the province’s startup companies.”