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Innovation, Business and Rural Development
March 27, 2014

Backgrounder

Investments in Venture Capital to Fuel Success of High Growth Industries of High Growth Industries

Access to venture capital for emerging growth sectors such as ocean technology and other knowledge-based industries will improve global competitiveness of companies operating in those sectors, strengthen employment opportunities, and drive economic diversification in Newfoundland and Labrador.

The Provincial Government will invest $10 million in a Build Ventures fund which will provide support to innovative start-up businesses, and will expand opportunities for early-stage businesses in the province with high potential for growth.  The privately-managed venture capital initiative will provide financing, as well as access to necessary mentoring and business expertise, to ensure companies have the resources to succeed in national and international markets.  The Provincial Government will also establish a new Venture Newfoundland and Labrador Fund to complement the Build Ventures fund. The fund is under development in partnership with venture capital stakeholders. Details on the fund will be announced in the near future.

Build Ventures
The Government of Newfoundland and Labrador will partner with the Federal Government, as well as the Governments of Nova Scotia, New Brunswick, and Prince Edward Island, and other private sector investors to support the Build Ventures fund.  Newfoundland and Labrador will contribute $10 million toward the approximately $60 million fund.

The regional fund will be an important link to other sources of investment from regional and national investors for Newfoundland and Labrador-based companies.  It will help to improve competitiveness, and support the province position as a business-friendly place.

Venture Newfoundland and Labrador
The Provincial Government will establish a Venture Newfoundland and Labrador fund that will focus on developing and providing assistance to Newfoundland and Labrador-based early-stage technology companies, as well as the province’s start-up community.  The fund is expected to focus on strategic sectors, improve access to larger venture capital pools, and induce private sector leveraged investment. The Venture Newfoundland and Labrador fund will be in partnership with Growthworks Atlantic Limited, the Newfoundland and Labrador Angel Network, and other investors.

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Media contact:
Heather MacLean
Director of Communications
Department of Innovation, Business and Rural Development
709-729-4570, 697-4137
heathermaclean@gov.nl.ca
 
2014 03 27            2:25 p.m.

 

 
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