VANCOUVER — The chief executive of B.C.’s new $500-million strategic investment fund knows she has a tough job ahead of her. “It’s definitely going to be a bumpy road, and we’re not going to be able to please everybody,” Jill Earthy said in an interview this week with The Logic . “We recognize that—but we’re definitely going to do our best.”
InBC Investment Corporation, which Earthy leads, has a mandate that goes beyond just closing B.C.’s tech funding gap. Though it’s independent, the provincial government created it to pursue a “triple-bottom-line” approach that focuses not only on financial returns, but also on environmental, economic and social impact.
InBC CEO Jill Earthy predicts “a bumpy road” ahead as she helps lay out the strategic direction of the organization’s $500-million strategic investment fund. She expects to announce the incoming chief investment officer by the end of March with the first investment to be made by early fall.
That means Earthy, and the organization’s soon-to-be-appointed chief investment officer, have a lot to do—and with an eager local tech community already knocking on the door for funding, there’s clearly some urgency.
“I think we may not make everybody happy right out of the gates, right?” she said. “We’re not going to be able to provide funding to everybody who needs it.”
Legislated into existence last year by the province’s NDP government, InBC’s policies and programs must enhance public services and affordability, help with Indigenous reconciliation, tackle equity and anti-racism, fight climate change and strengthen the economy, according to the mandate letter Innovation Minister Ravi Kahlon sent to board chair Christine Bergeron last May .
Earthy—who started in her new role on Dec. 13 after holding the top post at WeBC, a non-profit that boosts women entrepreneurs in the province—knows InBC won’t be able to do it all at once.
The organization is close to announcing its chief investment officer, who will craft the fund’s investment policy and be responsible for investment decisions, starting to deploy capital as early as this summer, Earthy said. The search is down to the final candidates, with a decision likely by the end of March and the person in place before the end of May. They will immediately start working on an investment-policy statement, which will define how the fund decides where to put its money—though it will be an evolving document.
Earthy has worked with the existing team—so far InBC has a staff of six, including three seconded from their government roles—to get that document started, but the CIO will “put their own lens on” it. The document will further outline the organization’s triple-bottom-line approach, she said, and look at asset allocation, specifying where the fund will start investing.
“Are we going to start potentially looking at investing in funds first? Are we going to dive into direct investments out of the gate?” Earthy said, asking questions she acknowledged she couldn’t yet answer. As it goes, the fund may also look at other mechanisms, such as a loan program or debt product, to help fill the gaps in the ecosystem.
The organization has already been fielding calls from both companies and funds seeking investment. “I think that’s fantastic,” said Earthy. InBC’s staff is gathering information from them to share with the incoming CIO.
Earthy expects the team to choose an initial area of focus and suggested some areas where she thinks the fund can have an immediate impact. “There’s still a gap that exists between the seed [fundraising round] and Series A” in the province’s tech funding ecosystem, she said, which could be a “key opportunity for us to zero in on.”
She also said she wanted InBC to map the different sources of capital and support available to B.C. companies along each step of their growth trajectory to identify other gaps it can help fill with capital or partnerships. Earthy suggested it could partner with organizations such as Innovate BC, a Crown agency focused on growing the province’s tech sector, and provide funding once startups graduate out of the programs offered by those groups.
There’s also pressure to prove InBC’s model—one that hinges on being inclusive and funding a more diverse group of entrepreneurs than traditional programs—can work. “We have a lot to prove,” she said. “We want to demonstrate that an inclusive approach to capital can be very effective. You don’t have to compromise returns for impact.”
Once the investment policy is finalized, the CIO will look to hire an investment team of eight or nine people, and Earthy expects InBC’s team to grow from its current six to over 20 within the next 18 months.
As for “the question everyone’s asking”—when will the fund announce its first investment? In the interview, Earthy was cautiously optimistic, initially saying late summer, then hedging. “If it happens earlier, that’s a great thing. But, just to be realistic, I’d say early fall.”
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TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
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