Business, Tourism, Culture and Rural Development
October 28, 2015

Invigorating the Economy by Strengthening the Entrepreneurial Community

$1.1 Million Investment Encourages Innovation and Entrepreneurship

Several of the province's leading business innovators are better positioned to promote growth and innovation in social enterprise, entrepreneurship and the technology sector through a Provincial Government investment of $1.1 million. Funding will help the Genesis Centre, Memorial University, and Propel ICT assist new and existing start-up clients, as well as students, in growing their businesses through advanced training and supporting new entrepreneurial ventures.

"Innovation has a tremendous influence on our province's social and economic development. By fostering innovation among our youth, budding entrepreneurs, start-ups, research institutions, and traditional industries, we are making important investments in the future of Newfoundland and Labrador. I am pleased that through this investment of over $1.1 million, we are ensuring that the necessary programs and resources for these innovative organizations will be in place to fully encourage and strengthen their opportunity for long-term success."
- The Honourable Darin King, Minister of Business, Tourism, Culture and Rural Development

With the goal of recruiting and fostering technology companies in Newfoundland and Labrador, the Genesis Centre and Propel ICT will undertake the targeted development of high growth potential businesses. Memorial University will use funding to help foster an entrepreneurial culture with the goal of strengthening entrepreneurship and social enterprise. Information on project funding can be found in the backgrounder below.

"Memorial University is an inclusive community dedicated to innovation and excellence in teaching and learning, research, scholarship, creative activity, service and public engagement. This funding will make a positive difference in the success of our students, faculty and staff and the critical work that they do to ensure a sustainable and prosperous future in Newfoundland and Labrador."
- Dr. Noreen Golfman, provost and vice-president (academic), Memorial University

Supporting an environment in which new businesses can develop and grow, and where existing businesses can expand, contributes to a healthy and diverse economy.Funding for innovation in business is being provided through the Regional Development Fund. The fund provides support to organizations by way of non-repayable contributions for projects aimed at stimulating economic development, innovation and capacity building in all regions of the province.

"By supporting the growing startup community in Newfoundland and Labrador, we are setting the province on a clear path to future prosperity. We need to capitalize on the intelligence, ability and ambitions of our province's entrepreneurs. Today's funding announcement will help us do that."
- Gary Dinn, CEO of Propel ICT, St. John's

In 2014, The Provincial Government invested $20 million in two venture capital funds, Venture Newfoundland and Labrador and Build Ventures. The funds are designed to provide greater access to capital for innovative entrepreneurs with high-growth potential start-ups. Additionally, companies working with interactive digital media can now avail of a new tax credit specifically designed to support businesses in this industry. The Newfoundland and Labrador Interactive Digital Media Tax Credit provides a 40 per cent refundable provincial tax credit on eligible salary and remuneration expenditures to Interactive Digital Media companies in the province.

QUICK FACTS

• Approximately $1.1 million is being provided to three organizations, to advance entrepreneurship, support emerging growth sectors and promote regional development activities.
• The Regional Development Fund provides support to organizations by way of non-repayable contributions for projects aimed at supporting economic development, innovation and capacity building in all regions of the province.
• For details of the digital media tax credit, visit //www.fin.gov.nl.ca/fin/tax_programs_incentives/business/idmtc.html.
• Additional information on programs can be found at: //www.btcrd.gov.nl.ca/regionaldev/index.html.

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Media contacts:

Tansy Mundon Director of Communications Department of Business, Tourism, Culture and Rural Development 709-729-4570, 693-1865 tansymundon@gov.nl.ca	Dave Sorensen Memorial University 709-864-2143 Sorensen@mun.ca
Gary J. Dinn CEO Propel ICT 709-769-1684 gary@propelict.com

BACKGROUNDER

Organizations Receiving Funding

Genesis Centre - $350,000
The Genesis Centre is a business incubator support network for technology based ventures located at Memorial University. The centre offers its clients programs which include: business services (mentors, consultants, advisors); technical/scientific supports (labs, researchers, expertise); physical resources (office and space, equipment, technology); and important intangible assets, such as credibility, synergy and confidence. Funding will support the centre's goal of nurturing new firms through to their next stage of development.

The Genesis Centre has a mission to spur innovation in Newfoundland and Labrador by assisting local technology entrepreneurs. As a business incubator established in 1997, the centre has had considerable success assisting clients in raising more than $85 million in private equity, while offering first-rate mentorship and providing office space. Building on notable successes, such as Verafin, Rutter Technologies and Avalon Microelectronics, the Genesis Centre is delivering programming to foster their clients' growth, as well as to develop key partnerships that enable Newfoundland and Labrador companies to gain exposure in local markets and abroad.

Memorial University Centre for Entrepreneurship - $486,816
A joint initiative of Memorial's Faculty of Business Administration and Faculty of Engineering and Applied Science, funding will support a new centre, which will help foster an entrepreneurial culture at Memorial and beyond.

The new centre will include student focused activities and curricula that bring together business and engineering students, and will be built around a vision of connecting and complementing existing elements of entrepreneurial support in Newfoundland and Labrador. This includes supporting the processes that facilitate successful start-up companies, particularly student-led start-ups, developing stronger relationships among elements of the entrepreneurial ecosystem and improving the health of entrepreneurship in the province through focused research.

Memorial University Centre for Social Enterprise, $225,000
Funding will support Memorial University, through the Faculty of Business Administration and the School of Social Work, in their process of developing a centre for Social Enterprise that will strengthen social enterprise and social entrepreneurship in Newfoundland and Labrador.

Its mission will be to generate knowledge about social enterprise, support teaching and learning, including a new MBA in Social Enterprise and Entrepreneurship, and serve as a catalyst for social innovation through community engagement, expanded cooperative and field education, and social business incubation.

Propel ICT - $109,840
Propel ICT is a network of people and organizations who are volunteering their time and working together to help entrepreneurs build successful new companies based in Atlantic Canada and selling to the world.

Propel ICT operates two accelerator programs - Launch and Build. The Build program is for more advanced startups with established sales traction and a product or service that has significant growth potential. The Launch program is offered for early stage startups that have a defined product or service, but are still developing their business model and beginning to work with early adopter customers.

Funding will support the Propel ICT program, which is designed to select promising startups and deliver an intensive 12-week course for selected clients. A major goal is to present the graduating companies to significant investors during and on completion of the program and to assist them in obtaining investor support. The top graduates are invited to present at Propel's major community event - Demo Day - where angel and venture capital investor's will get to hear the company pitch their idea in front of a large audience, recorded and televised for internet video, enabling the "pitch" to be viewed by an even larger potential pool of investors. Additional information on Propel ITC can be found by visiting; www.propelict.com .

2015 10 28                              10:40 a.m.