Several months ago, the Ontario government announced that it was forming the Ontario Emerging Technologies Fund. The Fund will co-invest with other investors in companies involved in the clean technology, life sciences and digital media and ICT sectors. The Fund is a $250 million fund over 5 years, limited to $50 million per year.
The Ontario government has now announced that Covington Capital Corporation and Northwater Capital Management Inc. have been appointed as managers to evaluate co-investment opportunities for this new Fund.
In addition, the government has published the guidelines (the "Guidelines") that apply to and govern investments by the Fund.
One of the interesting aspects of the Fund is that it will co-invest in portfolio companies with Qualified Investors. In addition to venture capital and private equity funds, Qualified Investors can include angel investors/groups and corporations not principally engaged in making venture capital or private equity investments. For example, if a large pharmaceutical company wants to invest in an emerging life sciences company, it can become a Qualified Investor and apply to have the Fund co-invest with it. Neither the Qualified Investor nor the portfolio company need be a Canadian company, although the portfolio company must be a private company and have an "Ontario Footprint" which is described in detail in the Guidelines.
More detailed information and a copy of the Guidelines can be accessed at the following site: http://www.ocgc.gov.on.ca/site/en/funds/ontario-emerging-technologies-fund/