For immediate release
June 27, 2012
Waterloo, Ontario — Peter Braid, Member of Parliament for Kitchener-Waterloo, on behalf of the Honourable Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), today announced an investment of up to $5,332,083 that will help eight innovative businesses in the Kitchener-Waterloo area get their products and ideas to market faster, while creating jobs and economic growth in southern Ontario.
The investment will allow the businesses to leverage a total of more than $11.2 million in additional private sector investments from venture capital firms and southern Ontario angel investors to complete commercialization projects. These projects are expected to create up to 136 high-quality jobs in the software and information technology sectors in southern Ontario over the next two years.
"Our government is investing in the people, businesses and communities of southern Ontario to create jobs and sustain economic growth," said MP Braid. "This investment will help provide eight innovative companies with the tools they need to succeed and grow. They will use these funds to develop new products, branch out into new markets, enhance their competitiveness, and create high-value job opportunities for southern Ontario."
The funding, which is being provided through the FedDev Ontario's Investing in Business Innovation initiative, breaks down as follows:
The Investing in Business Innovation initiative is designed to boost private sector investment in start-up businesses to accelerate the development of new products, processes and practices and bring them to market. This initiative is also designed to help angel investor networks and their associations attract new investment and support the growth of angel investment funds.
Please refer to the backgrounder for more information about the companies receiving funding under the Investing in Business Innovation initiative.
Created in 2009, FedDev Ontario supports the southern Ontario economy by building on the region's strengths and creating opportunities for jobs and economic growth. The Agency has launched a number of initiatives to create a Southern Ontario Advantage and place the region in a strong position to compete in the global economy. These initiatives are designed to encourage partnerships and support projects that help the region's businesses and communities become more competitive, innovative and diversified. To learn more, please visit www.feddevontario.gc.ca or call 1-866-593-5505.
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For more information, contact:
Director of Communications
Office of the Honourable Gary Goodyear
FedDev Ontario is investing a total of up to $5,332,083 in repayable contributions in eight Kitchener-Waterloo-area start-up businesses under the Investing in Business Innovation initiative. This investment will allow the businesses to leverage a total of $11,206,667 in additional investments from venture capital and angel investors.
The eight start-up businesses include:
Contribution: up to $996,000
ActivDox Inc. has developed software that transforms traditional static documents (such as PDF or e-books) into active documents so that documents are always current. FedDev Ontario's investment leverages an additional $1,992,000 from accredited angel investors with the Golden Triangle Angel Network, Capital Angel Network and U.S. Angels. This will enable the company to further develop and commercialize its content management software with a focus on tablets. The project is expected to create 15 new jobs.
Contribution: up to $988,583
ClevrU Corp. is an educational technology company that has developed a mobile e-teaching and networking platform for universities, colleges and other training providers. FedDev Ontario's investment leverages an additional $1,977,167 investment from accredited angel investors with the Golden Triangle Angel Network. This will enable the company to speed up the development and commercialization of its software platform. The project is expected to create 29 new jobs.
Contribution: up to $987,500
Primal Fusion Inc. has developed an innovative technology called semantic synthesis as an alternative to the conventional data-driven approach to interest networking. Semantic synthesis enables users to filter content on the internet and connect with their interests. FedDev Ontario's investment leverages an additional $1,987,500 from accredited angel investors with the Golden Triangle Angel Network to help Primal Fusion Inc. develop a suite of products based on its semantic synthesis technology. The project is expected to create seven new jobs.
Contribution: up to $985,000
Aeryon Labs Inc. is recognized leader in the development and commercialization of small Unmanned Aerial Vehicle (UAV) systems. This contribution will assist the company in continuing to advance the design, development, and manufacture of its flagship Scout™ micro-UAV and related systems to customers around the world. The Government of Canada funding for Aeryon Labs allows the company to access other angel financing raised through the Golden Triangle Angel Network. This will help accelerate growth in engineering, operations and other departments and create up to 15 jobs.
Contribution: up to $750,000
BigRoad Inc. (formerly MyMobile Asset Inc.) has developed a mobile tracking and management system for truck transportation companies, allowing truck drivers to electronically document their position, provide delivery updates, communicate with other drivers, and access regulatory information FedDev Ontario's investment leverages an additional $2 million from accredited angel investors with the Southwestern Ontario Angel Group that will be used for software design and development, as well as implementation of the application within the transport industry. The project is expected to create 33 new jobs.
Contribution: up to $300,000
ANTVibes Inc. has created the Audible Name Tag (ANT), which is a digital tool that takes the guesswork out of pronouncing names. The ANT allows users to record their names and share the recording in email signatures, electronic documents and social media profiles. FedDev Ontario's investment leverages an additional $600,000 from accredited angel investors with the Golden Triangle Angel Network. This will enable the company to further enhance and commercialize the ANT products. The project is expected to create 25 new jobs.
Contribution: up to $250,000
Qwalify Inc. has developed a hiring and career management system that uses unique human resource management tools to match job seekers and employers. FedDev Ontario's investment leverages an additional $500,000 from accredited angel investors with Maple Leaf Angels and Golden Triangle Angel Network. This will enable the company further develop and commercialize its software solution. The project is expected to create ten new jobs.
Contribution: up to $75,000
I Think Security Ltd. is developing products and solutions to secure digital assets for small- and medium-sized enterprises. FedDev Ontario's investment leverages an additional $150,000 from accredited angel investors with Maple Leaf Angels, which will enable the company further develop a mobile digital content security device. The project is expected to create two new jobs.
Investing in Business Innovation is designed to boost private sector investment in start-up businesses to accelerate the development of new products, processes and practices and help bring them to market. The Government of Canada is focusing on a portfolio of early-stage businesses that are recognized by the investor community as having the potential for high-growth and a net long-term economic benefit for southern Ontario. The investor community includes accredited angel investors from recognized angel investor networks in southern Ontario registered with the Network of Angel Organizations – Ontario and venture capital providers who are member of Canada's Venture Capital & Private Equity Association.
Funding under the initiative is also available for angel investor networks and their associations to attract new investment and support the growth of angel investment funds.
Applications for funding are being accepted and assessed on an ongoing basis. For more information and to apply, please refer to the program guidelines available on the FedDev Ontario website at www.feddevontario.gc.ca.
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