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Finally some good news on the horizon for small tech firms in Canada. Seems the Federal Government is going to front, at the least the seed money, for a new fund that will be managed by Business Development Bank of Canada (BDC).

Brand name managers

The Tandem Expansion Fund will be lead by Charles Sirois and Brent Belzberg, both well experienced in the world of technolgy startups. It will start with seed funds from the Federal Government of C$75M.

Sirois said that they will ultimately have a much larger pool of funds available once institutional investors get on board;

…the target size is four or five hundred million and with that amount of money we believe we can do a very good job in the Canadian marketplace…

Not new money

It should be noted that while this is good news for tech firms in Canada it is not an expansion of government funding but rather an allocation of funds already earmarked in the 2008 budget. Nonetheless every dollar does help the industry.

Gimme a B…

While not specifically communicated, there appears an interest, by this fund, to look at investments in the range of C$ 10-40M which will put them in the “B” round of most companies. This will benefit larger start ups that need some extra help in getting over the market growth hurdles both domestically and internationally.

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One Comment

  1. Capital Of Canada | FTP2FTP News:

    [...] BDC to deploy new VC capital in Canada | Shulist Group Inc.BDC announce the creation of the The Tandem Expansion Fund to act as VC in the technology area in Canada. Read more [...]

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