The New Brunswick government has committed $10 million to Build Ventures Fund II, the second early-stage technology fund of Canadian venture capital firm Build Ventures.
Halifax-based Build, which targets opportunities in clean technology, life sciences, information technology and other high-growth sectors in Atlantic Canada, raised $65 million for Build Ventures Fund I in 2013.
Fund I invested in five New Brunswick companies, including Fredericton-based agricultural predictive analytics provider Resson, which closed a $14 million Series C financing earlier this year.
Build is led by General Partners Patrick Keefe and Rob Barbara.
Update: Entrevestor‘s Peter Moreira reports Build Ventures Fund II has so far raised $25 million.
New Brunswick joins regional venture capital fund to fuel economic growth
30 July 2018
FREDERICTON (GNB) – The provincial government is working with a venture capital firm to provide funding for innovative startup companies with strong potential for growth.
Build Ventures Fund II is a blend of private and public sector capital managed by Build Ventures, which provides early-stage capital to emerging technology companies in Atlantic Canada. The government is contributing $10 million.
“Our province has a thriving startup community and our entrepreneurs play a critical role in growing New Brunswick’s economy and creating jobs,” said Economic Development Minister Francine Landry, who is also the minister responsible for Opportunities NB. “Your government has made supporting entrepreneurship a primary objective, which is why it is important that we help foster the innovation and creativity of New Brunswick businesses with the financing they need.”
Companies involved in clean technology, life sciences, information technology and other high-growth sectors will be eligible to access the fund.
“Access to early-stage capital is vital for New Brunswick’s startup community, and we are grateful that the Province of New Brunswick has joined with other public and private sector partners to support the next wave of startups by participating in Build Ventures Fund II,” said Rob Barbara, general partner of Build Ventures.
This is the second regional venture fund to be managed by Build Ventures. Its $65-million Fund I made investments in five New Brunswick companies, supporting the creation of 169 jobs in the province. Early backing from Build Ventures opened the door to other funding for Fredericton-based Resson, and the company has received nearly $28 million in two rounds of venture capital investment since 2016.
“Support from Build Ventures has been an important part of our success,” said Resson CEO Jeff Grammar. “They were with us in the early days and they have provided more than capital, offering advice and helping us make connections to other investors, partners and customers. A second Build Ventures fund is great news for New Brunswick. They are vital to the continued development of the province’s startup companies.”
Headquartered in Halifax, Build Ventures will invest in companies that are early stage yet have an established business model, a solid team, a large target market, are generating revenue and now need ramp-up capital. Investments will generally be between $1 million and $5 million for each venture.