New Brunswick Innovation Foundation is an independent, private organization focused on venture capital and research funding.
Through research, good counsel, and financial access, they assist New Brunswick innovators in finding solutions to problems with a worldwide impact while advocating for the best interests of their portfolios. By leveraging the successes of their innovators, they reinvest strategically to create new opportunities for New Brunswick.
They are committed to taking on leadership roles, carefully navigating the complex world of growth and commercialization for New Brunswick innovators, and motivating them to be fearless in their quest for global relevance.
They strive to be recognized as innovation, research, and venture capital leaders by encouraging a robust and cooperative innovation environment in New Brunswick.
Launchpad for Innovation
NBIF began their operations in 2003 as a launchpad for some of the region’s most innovative and exciting businesses. With more than $100 million invested, plus $457 million more raised from other sources, they supported the establishment of over 113 businesses, the funding of 494 projects in applied research, and the hiring of 75 professors in the province.
Their portfolio companies and researchers span various industries, including advanced manufacturing, life sciences, and environmental technologies that help build a cleaner, greener society. As an independent, non-profit corporation, their investment returns go back to the foundation to be reinvested in other start-ups and research initiatives.
They specialize in providing services in the following fields of venture capital, appplied research and funding.
Venture Capital
NBIF invests in early-stage startups, businesses entering new markets, and companies wanting to use R&D to innovate.
Money is required while scaling your innovation into a new business. Their Startup Investment Fund (SIF) offers qualified New Brunswick businesses pre-seed equity investments of up to $200,000, which can be utilized to demonstrate that the idea or product is commercially viable.
When making a pitch for this round of funding, these are some tractions considered favorable:
- Paid or unpaid product early-adopters
- Revenue
- Successfully received additional non-dilutive capital in the form of grants or loans.
They invest through preferred shares, common shares, or convertible debentures. With this initial investment, you’ll concentrate on growing your company out of New Brunswick, focusing on creating and commercializing your innovative technology, product, or service. The objective is to secure your next round of funding within the next 12 to 18 months to expand your company.
When assessing startup investment options, they consider a company’s product, market, team, and financials. While the initial pre-seed investment will help you get started, you’ll need to raise another round. As an early-stage investor, they want to see a plan for raising additional investment rounds. Therefore, they look for milestones you have marked on your path that will allow you to raise larger financing rounds.
Applied Research
Research is a critical part of innovation and growth. NBIF funds researchers whose work has a strong potential for being commercialized and positively impacting New Brunswick’s economy. They support early-stage research and more established projects carried out by researchers based at publicly funded NB institutions.
They invest in their province’s researchers and help bring their work to its commercial potential. In addition, all their grants are non-repayable, helping their province, economy, and residents.
They review research commercialization through the following:
- Technology Licensing
Patented innovations can be licensed for a fee to another person or company to exploit the innovation. Researchers who want to profit from their innovations but wish to refrain from taking the lead in commercializing it themselves can consider this option.
- Sale of IP
The innovation can be sold outright, either via the sale of the patent or the sale of the research product generated by the researcher. The technology must already be mature to interest a potential buyer.
- Spin Out Formation
The greatest choice, and usually the one with the highest potential revenue, is to set up your firm to explore and commercialize any promising innovations that are still in the early stages but have significant future potential. However, the investment in time is usually very significant, and the projected revenue outcomes are far from guaranteed.
- Contract Research
They characterize this as research done especially for one or more industrial partners, with the partner typically paying the price upfront and then keeping some or all of the study results produced.
- Provision of Services
Some innovations lend themselves better to service provision, e.g., a fee for service for an innovative analysis from a researcher’s lab.
- Impact on Policy/Process
In the social sciences, innovation is directed at improvements in public policy or processes that are anticipated to have a positive economic impact, e.g. through cost avoidance or direct savings.
Early Stage Commercialization Fund
The Early Stage Commercialization Fund (ESCF) supports the commercialization of institutional and university research in New Brunswick. The ESCF offers funding and go-to-market support of up to $50,000 to aid the academic and institutional research communities in pursuing commercialization prospects.
Projects must demonstrate the ability to advance a technology that has reached or is nearly at the prototype/proof-of-concept level. They must also demonstrate that technology is approaching market readiness, with the possibility of attracting industry partners or investment.
The New Brunswick Innovation Foundation (NBIF) attempts to identify and support technologies and concepts with the potential for venture capital investment through the Early Stage Commercialization Fund as a research and early-stage venture capital investing organization (ESCF).
As an optimistic realist grounded in reality and returns on investment, NBIF holds an unwavering belief in New Brunswick’s potential. They are passionate cheerleaders of their little province who can offer their innovators greatness. They make it happen by providing New Brunswick with the tools and knowledge needed to seize new opportunities and create advancements in the province.
New Brunswick innovators trust NBIF with their dreams and take this responsibility very seriously. For more information, visit their website at https://nbif.ca/.
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