September 14, 2017, MONCTON (GNB) – Opportunities NB has established two new funding policies to support early stage companies in New Brunswick.
The New Brunswick Economic Growth Plan identifies connecting entrepreneurs to capital as an important area of focus. The new Seed and Series A funding policies are designed to augment capital raised for certain early stage and high-growth companies.
“New Brunswick’s entrepreneurs play a critical role in building our economy and creating jobs,” said Finance Minister Cathy Rogers. “We know funding challenges remain a concern for many in the startup community and we are pleased to help foster the innovation and creativity of entrepreneurs with these new funding policies.”
Rogers spoke on behalf of Economic Development Minister Francine Landry, who is also minister responsible for Opportunities NB.
“Supporting entrepreneurship is one of our primary objectives,” said Stephen Lund, CEO of Opportunities NB. “In addition to working with our approved partners in supporting New Brunswick startups, we hope to attract additional investors from outside the province to enhance our growing startup ecosystem.”
The Seed and Series A funding policies will operate as “sidecar” funds in conjunction with funding from approved partners.
Under the Seed funding policy, Opportunities NB can invest up to $500,000 in a company in the initial stages of the startup cycle. A maximum of $2 million is available per year from the fund. The Series A funding policy allows the corporation to invest up to $1 million in a company that has recently passed the startup phase and is generating or is about to generate revenue. A maximum of $5 million per year is available from the fund.
To be eligible, a company must be registered and headquartered in New Brunswick, with the majority of its employees and operations in the province. Only an approved partner can invite Opportunities NB to invest; no applications will be received directly from companies.
“East Valley is excited and committed to the growth of the export innovation economy,” said Jeff White, chief operating officer of East Valley Ventures, one of the approved partners. “The companies we work with are focused on innovation and growth to enhance economic prosperity in New Brunswick and Atlantic Canada. This program aligns private and public capital, filling a void in the current marketplace.”
Opportunities NB is a Crown corporation that seeks to attract and support opportunities to grow the economy and create jobs. It provides support services for businesses across the province.
Participating in the announcement was Finance Minister Cathy Rogers.
Eric Lewis, communications, Opportunities NB, 506-866-6938.