The Nova Scotia government is hoping to kickstart investment in the province’s tech companies with the creation of two new venture capital funds.
The government will invest $15 million in a new venture capital fund dedicated to later-stage startups. Build Ventures will manage the fund on the condition that it will attract other investors. The targeted size for the new fund is $50 million to $75 million.
The government will also invest $10 million in a new private sector venture capital fund for early-stage companies.
“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.”
This approach to building these funds was recommended to the government by a selection committee responsible for evaluating responses to Innovacorp’s 2016 request for fund management proposals to oversee $25 million in venture capital funding. The selection committee will continue its work to establish the two funds, including determining the process for choosing the second fund’s manager.
“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.”