Montréal-based TandemLaunch, an accelerator and investor in emerging consumer electronics and multimedia technologies, has received a $5 million commitment from BDC Venture Capital. BDC’s commitment has been matched by an additional $5 million from angels and strategic advisors. TandemLaunch is aiming for a final closing of $15 million from both institutional and private sources. The firm already has five portfolio companies, including 3LD Noise Reduction and Mirametrix.
Montréal-based TandemLaunch to benefit from $5 million BDC Venture Capital investment
MONTREAL, Aug. 8, 2013 /CNW Telbec/ – BDC Venture Capital has committed $5 million to TandemLaunch, a ideation company, that will in turn invest in emerging consumer electronics and multimedia technologies and create up to a dozen new Canadian companies. TandemLaunch identifies the most promising consumer electronics and multimedia projects globally, provides them with growth opportunities by leveraging its deep industry connections, and then spins them out into successful and innovative new companies. BDC Venture Capital’s investment has been matched in the amount of an additional $5 million from angels and strategic advisors. TandemLaunch is aiming for a final closing of $15 million in total from both institutional and private investors.
This $5 million investment stems from the Government of Canada’s commitment in Economic Action Plan 2013 for the Business Development Bank of Canada (BDC) to make available $100 million in additional funds to invest in high-growth firms and firms graduating from business accelerators. The financing is part of the federal government’s efforts to promote a more innovative economy by providing the investment and the resources needed for high-potential small and medium-sized businesses to grow.
“The success of Canadian business competitiveness is built on a strong entrepreneurial culture and well-established networks that link investors to creative companies,” said the Honourable James Moore, Minister of Industry. “Our government believes in Canadian innovation and this investment promotes a vibrant venture capital system, here at home.”
“TandemLaunch has a strong capacity for business acceleration and an enviable track record of sourcing projects with high commercialization potential from university research from across the world,” said Jérôme Nycz, Executive Vice-President, Venture Capital & Subordinate Financing at BDC. “We believe this investment will provide many tangible, positive impacts for the Canadian venture capital ecosystem and has a high probability of performing strongly from a return standpoint, especially given the large size and growth of the consumer electronics industry.” Dominique Bélanger, Director of Strategic Investments and Initiatives at BDC Venture Capital, will continue his successful management of BDC Venture Capital’s relationship with TandemLaunch.
The global consumer electronics market is anticipated to grow at an annual rate of over 10% during 2012-20151. From a local standpoint, given Montréal’s strength in the engineering and creative visual fields, portfolio companies will have access to a scalable workforce that is critical to their success.
“We are delighted that BDC Venture Capital has decided to join our efforts, both as an investor and as a partner,” stated TandemLaunch CEO, Mr. Helge Seetzen. “The fact is: money matters, but mentorship matters even more. It is for this reason we think BDC Venture Capital is an ideal investor for our program. They bring not only funding to the table, but a large network of contacts and other non-financial support that will help us further leverage the full potential of our investments.”
BDC Venture Capital brings together a number of partners and players within the Canadian technology ecosystem to garner financial and non-financial support for Canada’s technology entrepreneurs. Today’s investment ties in logically with BDC Venture Capital’s role, especially with the work it is currently undertaking with accelerators, such as Growlab, Extreme Startups, HYPERDRIVE, FounderFuel, Propel ICT and Execution Labs. In addition to its accelerator strategy, BDC Venture Capital aims to support emerging Canadian GPs and to bring new investment models into the Canadian venture capital ecosystem.
About BDC Venture Capital
With more than $1 billion under management and more than 25 years of industry experience, BDC Venture Capital is an investor of choice focusing on IT, health, and energy/clean technology companies, as well as venture funds, with high growth potential. From seed through expansion to exit, our mandate is to help build outstanding Canadian companies, while working to create a sound financial ecosystem for Canadian technology ventures. Find out more at www.bdc.ca/vc or on Twitter @BDC_VC.
About Tandem Launch
TandemLaunch scouts, accelerates and commercializes early-stage technologies from the world’s top universities in collaboration with major Consumer Electronics brands. With over $8M under management, TandemLaunch can provide portfolio companies with full seed financing, turn-key engineering and business resources, as well as access to many of the largest companies in the $1 trillion dollar consumer electronics industry. Find out more at www.tandemlaunch.com or on Twitter @TandemLaunch.
SOURCE Business Development Bank of Canada
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BDC Venture Capital
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