Federal Economic Development Agency for Southern Ontario

Federal Economic Development Agency for Southern Ontario

July 28, 2015 11:40 ET

Harper Government Supports Growth of New Tech Companies in Northumberland

COBOURG, ONTARIO--(Marketwired - July 28, 2015) - Federal Economic Development Agency for Southern Ontario
(FedDev Ontario)

Technology startups and innovation-driven enterprises will benefit from new funding, mentoring and support thanks to an investment announced today by FedDev Ontario Minister Gary Goodyear and Member of Parliament for Northumberland-Quinte West Rick Norlock.

The Harper Government is providing funding of up to $1.1 million, which will enable the Northumberland CFDC to expand their acceleration services with the launch of N1M. This initiative will further support startup technology companies in the region, provide N1M companies with strategy services and skills training along with performance-based, non-repayable contributions matching the entrepreneur's investment in their company. N1M is designed to give idea and validation stage startups a significant early boost.

Northumberland CFDC is working at the local level to develop a unique exurban startup ecosystem (one that includes partners such as Northumberland Manufacturers' Association, the Gaming and Entrepreneurship Lab at IDEAHUB, and Spark Centre), Northumberland's Regional Innovation Centre. N1M will expand efforts to encourage and accelerate innovation and entrepreneurship as a pathway to future prosperity, job creation and economic diversification.

The CFDC successfully piloted this initiative in 2012, through which it accelerated the launch of 22 technology companies with high-growth potential and created 53 new jobs in southern Ontario.

This non-repayable contribution is through FedDev Ontario's Investing in Business Innovation initiative, which is aimed at strengthening the innovation ecosystem in southern Ontario by supporting new entrepreneurs, early-stage businesses and angel investors.

Quick Facts

  • The Harper Government's investment in the N1M program is expected to support 25 high-potential early-stage businesses primarily in Northumberland, which will create 23 new jobs and maintain 48 jobs. Through this project, the Northumberland CFDC is leveraging $750,000 in matching seed funding from participating startups and will help the companies attract $960,000 in future private-sector investments.
  • The N1M program is expected to enhance economic activity in high-growth sectors, such as information and communication technology, game development, and advanced manufacturing.
  • Northumberland CFDC is a member of the Canadian Venture Capital and Private Equity Association and an industry partner of both the National Angel Capital Organization and the Network of Angel Organization-Ontario.
  • In 2012, the federal government, through FedDev Ontario, provided up to $529,200 to support the initial pilot project.
  • Since its creation in August 2009, FedDev Ontario has invested more than $1.4 billion, resulting in partnerships with over 12,000 organizations and more than $2 billion in additional leveraged investments to support businesses, organizations and communities.

Quotes

"Our Government recognizes the importance of supporting start-up businesses in the early stages and providing them with the skills necessary to become successful entrepreneurs. Supporting small businesses at this stage will help create jobs and economic prosperity in the region."

- The Honourable Gary Goodyear, Minister of State for FedDev Ontario

"This investment in the Northumberland Community Futures Development Corporation is great news for the region. It will help entrepreneurs develop and bring to market new and innovative products, which in turn will support the growth of the technology sector."

- Rick Norlock, Member of Parliament for Northumberland-Quinte West

"We are excited to build on our record of providing startups with valuable early-stage resources to position them for future investment and a successful commercial launch. We are grateful for the support we have received today from the Government of Canada in support of our vision."

- Wendy Curtis, Executive Director, Northumberland CFDC

Related Products

Backgrounder: FedDev Ontario Supports Growth of New Tech Companies in Northumberland

Speech: Investing in Business Innovation Funding Announcement – Northumberland Community Futures Development Corporation (CFDC)

Associated Links

Investing in Business Innovation initiative

Northumberland CFDC

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Backgrounder

July 28, 2015

FedDev Ontario Supports Growth of New Tech Companies in Northumberland

Through the Investing in Business Innovation initiative, FedDev Ontario is providing the Northumberland Community Futures Development Corporation (Northumberland CFDC) with an investment of up to $1.1 million to launch N1M: an expanded version of the organization's initial pilot project. The Northumberland CFDC is a not-for-profit organization that delivers financing and strategy services to entrepreneurs.

Funding is geared towards supporting high-potential, early-stage technology businesses looking to develop and commercialize new products.

Between 2012 and 2014, with $529,000 in FedDev Ontario funding, the Northumberland CFDC's pilot version of N1M launched 22 technology companies with high-growth potential and created 53 new jobs primarily in Northumberland, along with the generation of three new patents.

Qualified startups are eligible to receive:

  • Up to $30,000 in matching non-repayable contributions based on achievement of performance milestones
  • Additional skills training up to $2,500 at 100% of eligible costs
  • Venture catalyst support (strategy services, mentoring and industry connections)

Further details are available on the Northumberland CFDC website.

The new funding for the N1M initiative is expected to help 25 high-potential early-stage businesses grow, which will result in the creation of an estimated 23 jobs while maintaining 48 jobs.

This project aligns with regional economic development strategies to diversify the workforce, increase investment in technological and industrial infrastructure, and focus development in target sectors such as advanced manufacturing, agriculture and agri-business, and emerging technologies.

About the Northumberland CFDC

The Northumberland Community Futures Development Corporation (Northumberland CFDC) is a member of the Canadian Venture Capital and Private Equity Association (CVCA) and an industry partner of both the National Angel Capital Organization (NACO) and the Network of Angel Organizations-Ontario (NAO-O). The independent business development organization also runs a high-profile annual startup competition known as N100. N100 offers startups the chance to compete for a significant $100,000 investment.

FedDev Ontario's Investing in Business Innovation Initiative

The Investing in Business Innovation (IBI) initiative aims to strengthen the innovation ecosystem in southern Ontario. It helps new entrepreneurs to become investment-ready through seed financing and skills development. It helps early-stage businesses with a minimum viable product or service to further develop and bring it to market.

It helps angel organizations to expand their members and services, which increases private sector investment and mentoring opportunities for businesses. All of these activities will help build a portfolio of early-stage businesses with the ability to become world-leading innovators.

Funding is available for:

  • Not-for-profit organizations that provide skills development and seed financing to new entrepreneurs;
  • Innovative, early-stage businesses with less than 50 employees to help leverage angel and capital investments; and
  • Southern Ontario-based angel investor networks.

Applications are being accepted and assessed on an ongoing basis. Eligibility requirements and further details are available on the FedDev Ontario website.

Related Products

News Release: Harper Government Supports Growth of New Tech Companies in Northumberland

Speech: Investing in Business Innovation Funding Announcement – Northumberland Community Futures Development Corporation (CFDC)

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