Investment
U.S. investment giant Hamilton Lane pulls out of federal venture capital program – The Globe and Mail
A spokesman for International Trade Minister Mary Ng – seen here in Toronto on March 9, 2020 – whose department oversees the program, said despite ‘an internal decision by Hamilton Lane’ to drop out, the government was ‘encouraged’ that it will maintain an office in Canada and still invest here.
Cole Burston/The Canadian Press
U.S. fund management giant Hamilton Lane Advisors LLC has pulled out of one of the federal government’s signature innovation funding programs, less than two years after Ottawa pledged close to $80-million to the company to invest in the Canadian technology sector.
“Hamilton Lane is withdrawing its participation effective immediately,” a spokesman for the private fund manager told The Globe and Mail.
As a result, the Trudeau government’s venture-capital catalyst initiative (VCCI) program, which is supposed to pump $1.4-billion into the Canadian innovation sector, has fallen $275-million short.
A government source said despite “an internal decision by Hamilton Lane” to drop out, the government was “encouraged” that it will maintain an office in Canada and still invest here. The program is overseen by small business and international trade minister Mary Ng.
The news surfaced days after the federal innovation, science and economic development department revealed it spent $1-billion less than planned in the past fiscal year, largely because of a delay in spending for innovation programs.
The VCCI program followed a successful venture-capital action plan (VCAP) launched in 2013 by Stephen Harper’s Conservative government at a time when the venture-capital industry was struggling to raise money in the wake of the 2008 recession.
Under VCAP, the government pledged $340-million, alongside $100-million from Ontario and Quebec, to four private-sector “funds-of-funds” managers on condition they raise $2 from private investors for every $1 from government.
The four managers, which in turn backed venture funds that directly backed startups, raised $1.4-billion from private and public sources, fuelling what is now a flourishing domestic technology sector. Last year, venture-capital firms invested $7.3-billion in Canadian technology companies, according to market data firm Refinitiv, second only to 2000 levels, adjusting for inflation.
The industry lobbied for a sequel, which came with some strings attached. While Ottawa still gave incentives to private investors by agreeing to be repaid only after they got their full capital back, plus 7 per cent, it insisted the winning managers raise $2.50 for every $1 Ottawa committed.
The government also pushed recipients to enhance diversity and increase the participation of women across the male-dominated venture capital sector.
Another change was choosing five winners – Hamilton Lane, plus incumbents Teralys Capital of Montreal, Toronto’s Northleaf Capital Partners and Kensington Capital Partners, and Boston-based HarbourVest Partners LLC – to split a pie that had previously been divided four ways under VCAP.
The government announced the winners in June, 2018, giving them until year’s end to hit the “first close,” and one more year to reach final targets. With funding from both Ottawa and Quebec, Teralys met its $400-million target first, in December, 2018. Northleaf, Kensington and HarbourVest followed in 2019, raising $300-million, $150-million and $300-million, respectively.
But Hamilton Lane was delayed. It didn’t announce its Canadian staff until last spring – led by Michael Woollatt, former chief executive of the Canadian Venture Capital and Private Equity Association – and only got approval from the Ontario Securities Commission to raise funds in May.
By then the other funds were late into the fundraising process, leaving Hamilton Lane, an unproven entity in Canada, way behind. The government extended its deadline to June 30, but the U.S. fund manager still found it difficult to raise funds, the company’s spokesman said.
The government source said no decision had been made on how to allocate the unused funds. Industry sources, who were granted anonymity because they were not authorized to speak on the matter, said it was too late for the four other winners to take on additional money.
One suggested the government should create a fund for life sciences venture-capital firms, which have struggled to raise domestic funding outside Quebec. Another suggested the government create a new program to spur additional investments in innovation.
Nate Meir, Partner at StageOne Ventures
“Everything that has to do with investment processes has changed and I think it is in favor of, not only the funds, but also the founders of companies,” said Nate Meir, Partner at StageOne Ventures. “Founders of companies nowadays, when they raise money, they have to better their story, have much more validation, and therefore they get to have more conviction. They’re building, and they know they’re working on something real.”
StageOne Ventures is a Seed stage VC based in Israel that invests in infrastructure technology for large enterprises. It focuses on the inception stage of companies and is investing now from its fourth fund, where it has a total of half a billion dollars under management.
According to Meir, the change in the market also positively favors investors. “On our side, the investment side, it means we have more time to validate the story, check with our network, connect… we’re focused on the inception stage so we work with those founders, we are focused more now on connecting them to our network, check with prospect customers, and have them sit with many more potential customers.”
You can watch the entire exchange in the video above.
A commercialization landmark for Ontario cancer innovations and patient impact
TORONTO, March 29, 2023 /CNW/ – FACIT announced $1.5 billion in follow-on investment attracted to its portfolio of cancer biotechnology start-ups in Ontario, a significant milestone for life science commercialization in Canada. FACIT partners with start-ups to commercialize their made-in-Ontario technologies and intellectual property (IP). With FACIT’s expertise and seed capital, Ontario companies have gone on to create skilled jobs and high-tech facilities while keeping homegrown talent from leaving the province.
“This financing milestone represents a major win for Ontario’s innovation economy, and an unprecedented return on research investment for taxpayers,” said Dr. David O’Neill, President of FACIT. “It also signals hope for the two-in-five Ontarians who will be diagnosed with cancer and could have their cancer prevented, detected or treated by one of these innovations.”
FACIT and its strategic research partner, the Ontario Institute for Cancer Research (OICR), were created to capitalize on Ontario’s world-renowned medical research hub. To achieve this bold commercialization strategy, FACIT created its Prospects Oncology and Compass Rose Oncology Funds to invest in Ontario entrepreneurs and seed a domestic industrial pathway to drive cancer clinical trials and economic development.
By leveraging early investment exits, FACIT has established its own source of risk-capital and demonstrated the value of capitalizing on Ontario life sciences IP. Following consecutive waves of commercialization success, FACIT has made approximately $60 million in private sector returns available for reinvestment into Ontario innovation and the next generation of biotech leaders, including CTRL Therapeutics, Fusion Pharmaceuticals, Radiant Biotherapeutics, Tenomix, Xpan and others.
Given the global health marketplace is worth $10 trillion, capturing even a 1% share from homegrown IP could be a major boon for the economy, for cancer research, and for the patients who benefit from new breakthroughs.
“Implementing the principles of seed venture investing in a public research setting establishes an Ontario First pathway for cancer innovation,” Dr. O’Neill added. “With over 30 times leverage from the private sector, this novel commercialization venture has created tremendous value from homegrown IP, advancing start-ups and accelerating clinical trials.”
“Congratulations to FACIT on the impressive growth of its portfolio companies and the success of its groundbreaking approach to commercialization. OICR’s unique partnership with FACIT continues to generate great outcomes in our joint mission to advance cancer research innovations led by OICR researchers and their key collaborators to improve outcomes for people with cancer and grow Ontario’s economy,” said Dr. Laszlo Radvanyi, President and Scientific Director of OICR.
“Our government is focused on the long-term economic growth of Ontario by supporting entrepreneurs and making key investments in research and innovation,” said Jill Dunlop, Minister of Colleges and Universities. “Ontario’s support for leading organizations like FACIT highlights our province’s commitment to maximizing the value of made-in-Ontario research and intellectual property, so we can increase commercialization opportunities and ultimately help our discoveries reach patients so they can lead longer and healthier lives.”
“Through our Life Sciences Strategy, we’re ensuring Ontario remains at the forefront of innovation and continues to be a global leader in life sciences,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “FACIT’s milestone is great news for the sector and an important step forward in Ontario cancer innovation. We’re committed to adopting innovative approaches to secure and grow our position as an attractive destination to do business.”
About FACIT
FACIT is an award-winning commercialization venture firm that builds companies with entrepreneurs to accelerate oncology innovation, with a portfolio that has attracted more than $1.5 billion in investment to Ontario. Blending industry experience, capital and the unsurpassed clinician-scientist network of its strategic partner the Ontario Institute for Cancer Research (OICR), FACIT capitalizes on the province’s investment in research and healthcare to the benefit of the local economy and patients worldwide. Cancer Breakthroughs. Realized. facit.ca.
View original content:https://www.prnewswire.com/news-releases/facit-generates-1-5-billion-in-follow-on-investment-301784531.html
SOURCE FACIT Inc.
View original content: http://www.newswire.ca/en/releases/archive/March2023/29/c8208.html
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With the Canadian economy booming, more and more people are looking to invest their money in different types of opportunities. Whether you’re a beginner investor or an experienced one, it is important to understand the different types of investments available in Canada before making any decisions. There are a variety of investment options available in Canada that offer varying levels of risk and return potential. Here’s a quick breakdown of some of the investment markets in Canada.
Major developments in Canada’s financial sector
Canada’s financial sector has seen several major developments in recent years. The most significant of these is the introduction of the Bank Act, which was passed in 2018 and provides a framework for regulating banks and other financial institutions. This act also includes provisions to protect consumers from unfair practices, such as predatory lending and high-cost credit products. Additionally, the government has implemented measures to increase competition in the banking sector by allowing non-bank entities to offer certain banking services. This has resulted in more choices for consumers when it comes to their banking needs.
Moreover, Canada’s financial sector has seen an increased focus on digital technology, with many banks now offering online banking services and mobile apps that allow customers to manage their finances on the go. Finally, there have been efforts to make financial services more accessible for all Canadians by introducing initiatives such as no-fee bank accounts and low-cost credit cards. Be sure to check out Canadian finance news on Finances.ca to stay informed on recent developments in the financial sector. The site also provides insights into good credit management and tips on how to choose the best loans, credit cards and investment opportunities.
Trends in the Canadian stock market
The Canadian stock market has been on a roller coaster ride in recent years, with the TSX Composite Index reaching record highs before plunging to its lowest levels since 2009. In 2020, the index was up by more than 20%, making it one of the best-performing markets in the world. This year, however, has seen a different story as the effects of the pandemic have caused volatility and uncertainty in global markets.
Despite this, there are still some trends that investors should be aware of when investing in Canadian stocks. One trend is that large-cap stocks have outperformed small-cap stocks over the past few months. This is likely due to their greater stability and ability to weather economic downturns better than smaller companies. Additionally, sectors such as energy and financials have been outperforming other sectors due to their higher dividend yields and growth potential. Finally, technology stocks have also been doing well as they benefit from increased demand for digital services.
The future of Canada’s real estate market
Canada’s real estate market is expected to remain strong in the coming years, with prices continuing to rise. The demand for housing is expected to remain high, as more people move into cities and look for affordable housing options. While interest rates are on the rise, inflation is expected to level off soon. Either way, the demand for housing is high and will more than likely remain high for the foreseeable future.
However, some potential risks could affect the market in the future. For example, rising unemployment rates could lead to a decrease in demand for housing and an increase in foreclosures. Moreover, changes in government policies or regulations could have an impact on the real estate market as well. As such, investors and buyers alike need to stay informed about any potential changes that may affect their investments or purchases.
Investing in crypto
When investing in crypto as a Canadian, it’s important to ensure that your money is going into a secure platform. It’s recommended that investors use an established exchange like QuadrigaCX or Coinsquare for trading cryptocurrency. These exchanges have strict security protocols in place so that your funds are safe from hackers or other malicious activities. Additionally, these exchanges offer access to many different cryptocurrencies so you can diversify your portfolio even further if desired.
It’s also important to be aware of tax implications when investing in crypto as a Canadian citizen. Generally speaking, any profits or realized gains made from trading cryptocurrency are subject to capital gains taxes at the same rate as stocks or other investments held by Canadians. Therefore, it’s vital to keep track of all transactions and calculate gains accordingly when filing taxes each year.
In conclusion, it is important to research and understand the various investment opportunities available in Canada before investing. Ensure that you are comfortable with the risks associated with each option and always consult a financial professional if necessary.
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