The New Brunswick Innovation Foundation (NFIB) has invested in 500 Startups Canada’s $30 million fund, and has become a partner with the venture capital fund, according to a report from Entrevestor.
In January of this year, 500 Canada announced the close of $15 million of its $30 million fund, which has already made about 40 investments in Canadian companies.
According to Entrevestor, NBIF invested in 500 Startups Canada’s fund earlier this year, and is helping 500 Startups find and fund candidates from New Brunswick and across Atlantic Canada. NBIF also became an LP in 500 Startups Canada earlier this year.
“Atlantic Canada has more great startup activity happening than anyone outside the region knows.”
– Sanjay Singhal
“Atlantic Canada has more great startup activity happening than anyone outside the region knows,” said Sanjay Singhal, venture partner at 500 Startups Canada. “And nowhere is that more evident than in New Brunswick and the ecosystem developed there by NBIF and many others. With all this activity, there is no way we could do the region justice in terms of investment coverage without NBIF as partners in the strategy and execution of finding, funding, and growing the next generation of great Canadian companies.”
While Calvin Milbury, president and CEO of NFIB, hasn’t disclosed the amount NBIF has invested in 500 Startups Canada, he did say it was modest and will hopefully make a bit of money over time.
Milbury also noted that along with hoping to increase funding for companies in Atlantic Canada, NBIF hopes to use its relationship with 500 Startups broaden its network across North America.
“It’s becoming increasingly important for us to build networks across the country and into the U.S.,” said Milbury, adding that 500 Startups Canada has already begun working with startups in Atlantic Canada.
In the past, Atlantic Canadian companies have received funding through the parent organization 500 Startups’ seed program. Among these companies is Moncton-based recruitment platformAlongside, which raised $498,150 from the Atlantic Canada Opportunities Agency in September 2016, and most recently took the top spot on Branham Group’s list of top 25 up-and-coming Canadian companies.
Another company is Fredericton-based WellTrack, which has developed online therapy for students with mental health issues and recently graduated from 500 Startups 20th cohort. Both startups received USD $150,000 for a six percent stake in their business.