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Venture Capital for the Software Industry
FIER Partners Invests $5 Million in the Brightspark II Fund
Montréal, May 11, 2006 - The Chief Executive Officer of FIER Partners, L.P., Sylvie Pinsonnault and the Chairman of the Board of Directors, Jean Cyr, have announced a new investment of $5 million in the Brightspark II Fund. “The investment by FIER Partners increases the capacity of the Brightspark II Fund to invest in the information technology field and, more specifically, in software,” Ms. Pinsonnault mentioned.
The Brightspark II Fund, formed in December 2004, invests at the idea or concept stage and at the start-up stage of young companies developing enterprise software, (business solutions for enterprises, resource planning, information and knowledge management, collaboration, etc.), infrastructure software, network solutions software and wireless communications software.
“There is little investment at these stages and this is what sets our Fund apart,” explained Sophie Forest, associate director of Brightspark, adding that “the experience and involvement of managers are essential to put these funds to good use.”
“Our contribution to the capitalization of the Brightspark II Fund is another opportunity for Québec companies to obtain venture capital managed by an experienced team that has proven the effectiveness of its action in support of companies in the information technology sector,” the Chairman of the Board of FIER Partners, Jean Cyr, said.
FIER Partners invested $5 million in the Brightspark II Fund in which many private investors are already involved, including the Fonds de solidarité FTQ, the Caisse de dépôt et placement du Québec, Export Development Canada, Edgestone Capital Partners and Fondaction CSN. With less than de 10% of the capital committed, the involvement of FIER Partners far exceeds the Partnership’s commitment to invest one dollar for every two dollars invested by the private sector.
With this new investment, FIER Partners continues to take concrete steps that help to bolster the venture capital sector dedicated to business start-ups in Québec. “We are also particularly pleased with this investment that enables us to support the software sector, one of the most dynamic and innovative in Québec,” Ms. Pinsonnault added.
FIER Partners is one of three components of the Regional Economic Intervention Fund (FIER) set up by the Québec government. It is a limited partnership with initial capitalization of $180 million is provided by IQ FIER, a subsidiary of Investissement Québec, for an amount of $90 million, and by three tax-advantaged funds: the Fonds de solidarité FTQ ($50 million), Capital régional et coopératif Desjardins ($25 million) and Fondaction, the Fonds de développement de la CSN pour la coopération et l'emploi ($15 million).
FIER Partners has $80 million to support the creation of sector development funds that make equity or quasi-equity investments in business start-ups. The limited partnership invests one dollar for every two dollars from private investors, so that the total capitalization of the sector funds could ultimately reach $240 million. FIER Partners also has an envelope of $100 million to support large-scale developmental projects, mainly in the regions. For more information, visit www.fierpartenaires.com/en.
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Information:
FIER Partners, L.P.
Jean-Pierre Bernier
514 873-7244