Last week, British Columbia announced that the province is creating a new $100 million venture capital fund, dedicated specifically to investment in technology. The official press release stated that the fund is intended to support “a comprehensive technology strategy aimed at stimulating growth in the fast-moving sector, creating jobs and strengthening a diverse economy.”
Named the BC Tech Fund and utilizing the hashtag #BCTECH for online conversations, the new fund aims to support the BC tech sector, which premier Christy Clark explained is a sector that’s growing faster than BC’s overall economy. The province has a multi-year strategy in place to support the continued growth of BC’s tech sector, including tactics such as the BC Tech Fund.
The strategy has three core pillars, with capital being the first (the other two being talent and markets), which was announced last week. The BC Tech Fund will support this first pillar and help support growth and job creation in BC’s technology sector. The fund will enable companies to expand, thereby contributing to our province’s economic growth.
This type of fund from the government will be highly competitive and will support those businesses with a more established presence and existing market validation. While this will be helpful in pushing those companies to the next stage, there’s still a need to boost businesses who are smaller and don’t necessarily have that mainstream recognition yet.
FrontFundr aims to fill that gap and works to support smaller businesses that don’t yet have the same momentum needed to qualify for the new BC Tech Fund. FrontFundr helps startups from the ground up, when capital is hardest to access, by allowing them to raise funds through equity crowdfunding. This type of funding gives startups the opportunity to raise capital from their established networks and existing customers (i.e. the crowd), as well as through traditional angel and accredited investors. Leveraging both the crowd and traditional investors provides startups with access to capital at the ground level, giving them the opportunity to grow to a place where they too could quality for larger grants.
FrontFundr is supportive of the growth of BC’s tech sector and the positive changes that are taking place in order to help startups flourish. From the new BC Tech Fund to expanding regulations that allow businesses to raise funds from the crowd, we look forward to seeing continued advancement in support of startups and ultimately, our economy.
For more information on raising funds through equity crowdfunding, visit our Entrepreneur Suite. If you’re interested in investing in a Canadian business, visit Pitch Place for live deals, or Prospect Lounge for companies who plan to raise funds in the future.