NBIF, Innovacorp Fund Propel Grads
April 09th, 2015
PropelICT, Atlantic Canada’s startup accelerator, announced Wednesday that the best Nova Scotian and New Bruncswick graduates from its accelerator will now be eligible for an additional $100,000 in funding.
The accelerator has struck a partnership with the New Brunswick Innovation Foundation and Innovacorp, which will consider investments in the leading graduates from each cohort. This program will begin with the coming cohort, which will run through the summer.
These graduates – those that complete the more advanced “Build” program – are already being considered for $150,000 in funding from BDC Capital. (Makers of hardware are eligible for even larger investments from BDC.) So with the new announcement, graduates of the Build program could be eligible for as much as $250,000 in seed financing.
“Atlantic Canada is building a growing ecosystem that supports the formation and growth of startup companies,” said Gary Dinn, CEO of Propel ICT. “With this announcement, we make that environment even stronger with increased access to early stage venture capital.”
Propel ICT operates two accelerator programs – Launch and Build. The Launch program is offered for early stage startups that have yet to fully develop their product or service. The Build program is for more advanced startups that have developed a product or service with early sales success.
Build graduates headquartered in New Brunswick will be eligible for investment of up to $100,000 from NBIF, while Build grads based in Nova Scotia will be eligible for up to a $100,000 investment from Innovacorp, Nova Scotia’s innovation agency. They are also eligible for BDC funding.
All these investments – those from Innovacorp, NBIF and BDC Capital – take the form of convertible notes, meaning they convert to equity investments once the company raises its first funding round.
“Propel ICT has proven itself as one of Canada’s top startup accelerators,” said Calvin Milbury, President and CEO of the New Brunswick Innovation Foundation. “We have invested in Propel ICT graduates from New Brunswick previously, and this partnership paves the way for more investments in the future.”
Added Charley Baxter, Vice President of Investment at Nova Scotia’s Innovacorp: “Propel ICT helps smart Nova Scotia entrepreneurs with good ideas build successful businesses. Some of Nova Scotia’s most promising startups have come out of its programs and we expect to see more.”
Participation in the Launch or Build program is available to any entrepreneurs based in Atlantic Canada. Applications for the next round of Launch and Build are now open with the deadline for applications being May 1. You can find more details here.
Since Propel ICT’s launch, more than 75 companies have graduated from its programs, attracting investment, creating jobs and growing the region’s economy.