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$100 Million in Business Creation in the Technology Sector
FIER Partners Invests $10 Million in the GO Capital Fund
Montréal, November 17, 2006 -
The Honourable Maxime Bernier, Canada's Minister of Industry and Minister responsible for the Business Development Bank of Canada (BDC), and Raymond Bachand, Quebec's Minister of Economic Development, Innovation and Export Trade, today announced the establishment of the GO Capital co-investment fund, which will provide $50 million for business creation and start-up in Quebec's technology sector. Under this initiative, BDC will act as the fund's manager and investor. GO Capital investments in the selected firms will match, dollar for dollar, the investments by BDC, bringing the available capital to $100 million.
"I congratulate BDC and its partners for this initiative, which advances Canada 's New Government's efforts to develop a more productive economy by investing in science and technology ," said Minister Bernier. "Today's announcement represents the collaboration and investment of all stakeholders — governments and the private sector. These partnerships are essential. We need to continue with this approach. It's a concrete example of the open federalism that our government is putting into practice."
"By using effective tools such as FIER Partners and with the contribution of our biggest institutional investors and the tax-advantaged funds, the Government of Quebec intends to support the economic sectors that will help Quebec to strengthen its position in the face of global competition. The FIER Partners investment is part of the new stream of seed funding for technology firms, which meets a significant need in Quebec 's venture capital market," said Minister Bachand.
The $50-million Fund includes $25 million from FIER Partners, $10 million from the Caisse de dépôt et placement du Québec, an additional $10 million from BDC, $3 million from the Solidarity Fund QFL, and $2 million from Fondaction, the CSN's development fund for co-operation and employment. BDC's total investment thus amounts to $60 million.
"Through its participation in this investment, BDC is working toward the objective of increasing the capital made available to businesses in the earliest stages of their development, and thereby encouraging the marketing of research output in Quebec's technology sector," said Jean-René Halde, President and Chief Executive Officer of BDC. "The Fund is the result of co-operation between the major venture capital partners. By entrusting us with the management of GO Capital, they are showing their confidence in BDC," he added.
"FIER Partners is very pleased to have contributed to the establishment of this fund intended to support young Quebec technology firms in search of financing, particularly firms working in the fields of advanced technologies, information technology, life sciences and telecommunications," said Sylvie Pinsonnault, managing director of FIER Partners.
This co-operative initiative involves the major players in Quebec's venture capital industry. GO Capital — which specifically targets businesses in the seeding and start-up phases — will help strengthen efforts already undertaken by BDC through its Technology Seed Investment Group, established in 2002. BDC seeks to adopt the same model in other Canadian provinces.
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Information:
FIER Partners, L.P.
Jean-Pierre Bernier
514 873-7244
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