The Newfoundland and Labrador government has committed C$10 million to Venture Newfoundland and Labrador II, a second provincial early-stage venture capital fund. The investment brings the fund’s initial capital to C$16.32 million, including private sector commitments. Venture Newfoundland and Labrador II, which is managed by Pelorus Venture Capital, is targeting C$30 million, BetaKit reported.
October 1, 2021
Supporting and addressing early stage financing is crucial to innovative entrepreneurs with high-growth potential. Through a $10 million investment in Venture Newfoundland and Labrador Limited Partnership Two, the Provincial Government is helping to further bridge that gap for Newfoundland and Labrador’s growing tech sector.
This investment in venture capital (VC) funding will continue the province’s support for early stage and pre-commercial companies for a 10-year period. This partnership, managed by Pelorus Venture Capital General Partner No. II Limited, will provide capital for new companies, promote diversity, and build on the significant momentum propelling the local tech startup industry. This funding complements a private sector investment of $6,320,000.
Initially launched in May 2015 as a $10 million investment fund, Venture Newfoundland and Labrador has led or been active in ten start-ups, totaling an investment of $9.7 million to date.
This VC support has helped attract over $36 million in additional private investment, with one-third of capital investment coming from outside the province. In the six years since the inception of the VC fund, support from Venture Newfoundland and Labrador Limited Partnership has resulted in nearly 270 jobs and over $20.5 million in annual income to the local economy. Companies that received support in recent years include Empowered Homes (MYSA), BreatheSuite and CoLab Software; each creating highly attractive local jobs, while retaining some of our talented young employees in the province.
“Venture capital funding is a step forward in positioning our province as a place where innovators and entrepreneurs with high growth potential can flourish. It will continue to drive our emerging ecosystem, and allow even more local tech firms the ability to raise capital for growth and expansion. This is an exciting time to be an entrepreneur in Newfoundland and Labrador.”
Honourable Andrew Parsons
Minister of Industry, Energy and Technology
“Over the last six years VNL I has had the privilege of investing in great founders who have taken smart ideas and have grown them into impressive companies. VNL II is the product of that success. The Pelorus team will be there to fund and mentor the next brilliant crop of Newfoundland and Labrador startups.”
President, Pelorus Venture Capital
“Venture Capital is smart, helpful capital. In addition to providing funding critical for growth, VCs provide valuable mentorship as well as introductions to potential customers, board members and future investors. They are critical to the growth of our technology sector.”
Investor, and Chair of the Innovation & Business Investment Corporation
“Mysa is incredibly proud of our success so far in launching not one, but three world class products to tens of thousands of customers across Canada and the US. We are also proud that we’ve achieved this in just five short years. Mysa’s rapid pace of growth has only been possible because of the venture capital support we have received here in Newfoundland and Labrador. The venture capital, the mentorship, and the networks that come with it, has been instrumental in allowing two brothers to take a small idea and turn it into a world class company that employs over eighty people here in the province.”