New Brunswick puts $5 mln to work in Startup Investment Fund

The New Brunswick government has committed $5 million to the Startup Investment Fund, which is intended to support entrepreneurs as they develop growth companies in the province. Activities the fund will support include startups, product development and testing, market research, intellectual property protection and general business development. Investments will range up to $100,000. The fund will be managed by The New Brunswick Innovation Foundation, which has made venture capital investments in more than 30 companies since 2004.

PRESS RELEASE

Province invests $5 million in new start-up investment fund

23 October 2013

FREDERICTON (GNB) – The provincial government is investing $5 million in a new start-up investment fund to assist entrepreneurs to develop innovation-based growth companies in New Brunswick. Premier David Alward made the announcement today.

“Investing in companies that start and grow from here is an important part of our plan to rebuild New Brunswick’s economy and create jobs,” said Alward. “As part of our government’s $80-million investment in innovation and research and development, we are creating another new tool to provide entrepreneurial New Brunswickers with an opportunity to obtain early-stage equity capital to transform their innovations and business concepts into commercially-viable ventures.”

The investment will be used to create and administer the Startup Investment Fund through the New Brunswick Innovation Foundation. The fund will be used solely to start-up and develop a business in New Brunswick focused on the development, refinement and commercialization of an innovative product, service, technology or process.

“Getting a new company off the ground, especially when it’s innovation-based, involves a lot of risk for entrepreneurs, their staff and backers,” said foundation chair Robert Hatheway. “However, with time and effort the rewards can be great, especially when the company starts to grow in size and personnel. The Startup Investment Fund is designed to provide new entrepreneurs access to the capital they need to create a new future for themselves and New Brunswick. People with big ideas and solid business plans need to know that it is possible to turn them into companies here.”

Activities the fund will support include company creation, product development and testing, market research, intellectual property protection and general business development. Investments will range up to $100,000 on a one-time-only basis. More information is available is on the New Brunswick Innovation Foundation website.

The New Brunswick Innovation Foundation is an independent, not-for-profit corporation that makes venture capital investments in start-up companies; funds applied research at New Brunswick research organizations; and provides innovation vouchers for established businesses. The foundation invests the financial returns it earns on its investments in innovation-based companies and projects in New Brunswick.

Media Contact(s):

Bruce Macfarlane, communications, Department of Economic Development, 506-453-8607.

Jesse Robichaud, communications, Office of the Premier, 506-453-2144.

Chet Wesley, marketing and communications, New Brunswick Innovation Foundation, 1-877-554-6668.

Photo courtesy of Shutterstock.