NEWS RELEASE

For Immediate Release 2009STED0018-000686 November 27, 2009

Ministry of Small Business, Technology and Economic Development

 

NEW FUND MANAGERS TO BOOST B.C. TECH SECTOR

 

VANCOUVER – The BC Renaissance Capital Fund (BCRCF) has enlisted entrepreneurial leaders in the world of investment capital as its new fund managers to invest in British Columbia’s promising technology businesses, said Small Business, Technology and Economic Development Minister Iain Black today.

 

“British Columbia’s vibrant technology companies need investment to grow, and so we are partnering with some of the strongest, most successful investors operating in Canada to help build anchor technology companies in our province,” Black said. “With this commitment, B.C.’s most innovative companies now have access to growth capital and global markets. Our province is building on its lead in access to early stage capital.”

 

BCRCF’s four new fund managers are: Tandem Capital, Vanedge Capital, Wesley Clover and Yaletown Venture Partners. They join three current fund managers: ARCH Venture Partners, Kearney Venture Partners and VantagePoint Venture Partners. Together, the seven managers can invest up to $90 million directly from the BCRCF ($55 million with the four new fund managers), plus their own capital resources of over $2 billion in total.

 

The fund’s new managers include global investment leaders. Charles Sirois, general partner at Tandem Capital, is also CIBC chairman and founder of Telesystem and FIDO mobile; Brent Belzberg has a distinguished business and investment background. Vanedge Capital’s Paul Lee served as president of Electronic Arts Worldwide Studios and is an original co-chair of the Premier’s Technology Council. Wesley Clover is led by entrepreneur Sir Terry Matthews, founder of multi-billion-dollar corporations, including Mitel and NewBridge Networks. Yaletown’s Mike Satterfield has over 25 years of entrepreneurial and senior operating experience in the software industry.

 

“BCRCF’s new infusion of investment strength will help build profitable partnerships with B.C.’s technology sector and provide important venture capital support,” said Phillip Abrary, president of Ostara Nutrient Recovery Technologies Inc., a Vancouver environmental technology company. “Last year, a BCRCF venture partner led $10.5 million in financing that enabled our company to commercialize a process to recover nutrients from wastewater and make environmentally-friendly fertilizer.”

 

The BCRCF leverages investment capital for B.C.’s information technology, clean energy technology, new media and life sciences companies.

 

 

 

The Province launched the fund with $90 million from the BC Immigrant Investment Fund. BCRCF managers must each raise $80 million in additional investment capital within a year of their selection.

 

For more information on the BC Renaissance Capital Fund and the seven fund managers, visit: www.bcrcf.ca

 

Two backgrounders follow.

 

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Contact:

Carolyn Heiman Communications Manager Ministry of Small Business, Technology and Economic Development 250 952-0152 250 888-3545 (cell)

 

For more information on government services or to subscribe to the Province’s news feeds using RSS, visit the Province’s website at www.gov.bc.ca.

 

 

BACKGROUNDER

 

November 27, 2009              Ministry of Small Business, Technology and Economic Development

 

BC RENAISSANCE CAPITAL FUND MANAGERS

 

BCRCF raises venture capital for technology companies in British Columbia. Working with a base of $90 million, BCRF adds capital to other investment funds already under management by other companies selected as fund managers. Selected by competitive process, the four new fund managers, are:

 

·         Tandem Capital – a $300-million, late-stage diversified venture capital fund with offices in Montreal, Toronto and Vancouver – focused on mature emerging technology companies across Canada with a specific mandate to address the later-stage “financing gap” that currently exists between the U.S. and Canada – led by distinguished entrepreneurs Charles Sirois and Brent Belzberg.

 

·         Vanedge Capital – a Vancouver-based firm investing in new media, interactive entertainment and related software. Their founding partner, Paul Lee, is a global leader in electronic entertainment industry.

 

·         Wesley Clover – an early-stage fund, working closely with universities and research centres to commercialize technology in the IT communications sector – led by renowned technology entrepreneur Sir Terry Matthews, with offices in Victoria, Kanata, and Wales.

 

·         Yaletown Venture Partners – a Vancouver-based fund that invests in IT and clean technology with more than $100 million under management.

 

The managers will join the following three managers announced in April 2008:

 

·         ARCH Venture Partners – ARCH invests in early-stage companies with potential to grow rapidly through development of groundbreaking technologies. It has $1.5 billion (US$) under management in seven funds with offices in Chicago and Seattle.

 

·         Kearny Venture Partners - With over $320 million (US$) in capital under management, Kearny Venture Partners is a San Francisco-based firm that focuses exclusively on life science technology.

 

·         VantagePoint Venture Partners - With more than $4 billion (US$) of capital under management, VantagePoint invests in entrepreneurial companies at all stages of development in the clean technology, life sciences, and information technology sectors. It is headquartered in San Bruno, California.

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Contact:

Carolyn Heiman Communications Manager Ministry of Small Business, Technology and Economic Development 250 952-0152 250 888-3545 (cell)

BACKGROUNDER

 

November 27, 2009              Ministry of Small Business, Technology and Economic Development

 

BC RENAISSANCE CAPITAL FUND

 

In April 2008, the Province launched the BCRCF with $90 million from the BC Immigrant Investment Fund.

 

BCRCF uses its capital resources to leverage additional private venture capital to invest in B.C. technology companies.

 

The additional private venture capital comes from investment firms selected by the BCRCF as fund managers. BCRCF currently has seven fund managers, selected after competitive processes in 2007 and 2009.

 

Through the seven fund managers (Tandem Capital, Vanedge Capital, Wesley Clover, Yaletown Venture Partners, ARCH Venture Partners, and VantagePoint Venture Partners), BCRCF expects to leverage $450 million of investment to help B.C. technology companies succeed.

 

To date, $9 million from the BCRCF has leveraged $37 million in investment funds for five B.C. companies.

 

 

BCRCF’s successes include:

 

·         Yaletown led a $6.45-million investment (including $4 million leveraged from other sources such as California-based Granite Ventures) in Indicee, a Vancouver-based firm that produces online applications to help small businesses consolidate and share data.

 

·         VantagePoint led a $10.5-million investment in Ostara Nutrient Recovery Technologies Inc., a Vancouver company that uses University of British Columbia technology to produce an environmentally-friendly, commercial-grade fertilizer.

 

Increasing venture capital funding plays a key role in the B.C. Research and Innovation Strategy, aimed at helping British Columbia develop knowledge to compete in the global economy.

 

The BC Immigrant Investment Fund receives capital from the Immigrant Investor Program, a federal government initiative that makes investment funds available. The provincial government expects the BCRCF to realize a commercial profit on investments.

 

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Contact:

Carolyn Heiman Communications Manager Ministry of Small Business, Technology and Economic Development 250 952-0152 250 888-3545 (cell)