Archived — Government of Canada Invests in Faster, Easier Auto Sales
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For immediate release
November 12, 2012
Burlington, Ontario — The Honourable Lisa Raitt, Minister of Labour and Member of Parliament for Halton, 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 in Burlington's PowerBand Global Inc. to develop software that will make buying, selling and servicing vehicles easier.
"Our Government's top priority is jobs, growth and long-term prosperity. This support is helping companies like PowerBand grow and compete in the global marketplace," said Minister Raitt. "Not only will this investment help create local jobs, but it will also help increase sales through the attraction of new business partners."
PowerBand Global Inc's mandate is to modernize and simplify the management of transactions, making them more efficient and competitive in today's digitized market. PowerBand Global Inc. is receiving up to $676,000 through FedDev Ontario's Investing in Business Innovation initiative, which will be used to develop the Dynamic Dealer Exchange (DDX) system, a hub that enables automotive dealers to sell and finance vehicles, manage inventory and maximize after-sales service revenue on one platform. This offers an appealing solution for dealerships that currently have to patch together several different applications to handle workflow.
The investment will also fund the development of a portal to connect businesses directly to their financial lending partners. This portal is already in demand after successful trials in southern Ontario, and is currently being used by several local retailers to help arrange financing for their customers.
The new technology will help the company attract new clients and expand in North America. In addition to significant contributions from investment partners Kelly Jennings and Leggat Auto Group, PowerBand Global Inc. has also secured a $2 million investment from Covington Capital Corporation, which is attracted to the company's growth potential in the automotive and retail industries.
"The PowerBand Global model brings together the money and expertise of registered venture capitalists, our initial individual investors and now the federal government," said PowerBand Global Inc. C.E.O. Rob Orr. "We feel this contribution will be imperative to our technology development and boost our competitiveness in Canadian markets and on the international stage."
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 help bring them to market. 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, please refer to the program guidelines available on the FedDev Ontario website.
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:
Office of the Honourable Gary Goodyear
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