Ontario Investing Up To $25M To Help Successful Start-ups Grow

Ontario Investing Up To $25M To Help Successful Start-ups Grow
Allontario ads

April 27, 2015 – Office of the Premier – Unique Venture Capital Fund Leverages Private Sector Investment, Knowledge and Networks: The government is partnering with private investors and business leaders to create Scale Up Ventures, a new venture capital fund designed to support Ontario’s most promising start-ups through a unique combination of investment and mentorship.

As part of the 2015 Budget, the government is contributing up to $25 million to establish the venture capital fund. A further $25 million in matching funds will be provided by private investors. Scale Up Ventures will invest the resulting $50 million in Ontario start-ups that have shown initial market success and that demonstrate strong growth potential, but require new investment and mentorship to expand their operations.

That mentorship will come from the new Scale Up Leadership Council, which will be led by Nadir Mohamed, former CEO of Rogers Communications. The council will be made up of approximately 30 senior business leaders and successful entrepreneurs.

This investment model, which pairs capital investment with high-level mentorship, makes Scale Up Ventures the first venture capital model of its kind in Canada.

Support for start-ups and providing access to venture capital for entrepreneurs is part of the government’s plan to build Ontario up. The four-part plan includes investing in people’s talents and skills, the largest investment in public infrastructure in Ontario’s history, creating a dynamic, innovative environment where business thrives, and building a secure retirement savings plan.

Quick Facts

  • The Scale Up Ventures Fund will be managed by a professional fund manager with experience in venture investments.
  • Initial investments in promising start-ups are expected to range from $500,000 to $3 million, with the potential for follow-on investment as the company progresses.
  • No salaries or investment management fees will accrue to the chair or the Scale Up Leadership Council for their role in the fund’s operations.
  • Scale Up Ventures is one of the many programs launched by the Ontario government designed to support youth entrepreneurship, including the Youth Entrepreneurship Fund and the Youth Innovation Fund.

Source: http://news.ontario.ca/opo/en/2015/04/ontario-investing-up-to-25-million-to-help-successful-start-ups-grow.html

(Visited 65 times, 1 visits today)