Manitoba-based venture capital activity in spotlight
- The former government committed $50 million to a venture capital fund of funds named the Manitoba First Fund (MFF)
- The MFF has yet to invest any of this money in Manitoba enterprises
In 2020, the government increased its financial commitment to $100 million and has allocated $40 million to two Saskatchewan-based fund operators
- These funds are targeting mid-market companies with established revenue looking for growth capital or investment for succession planning
Both fund operators have begun actively seeking investment targets and expect to close their first deals in the coming weeks
Ken Ross, CEO of the MFF, stated that additional deals are currently being discussed
- Future fund investments may focus on early-stage financing, a lower level of risk with lower capital required
Some remedial work was required to reintroduce venture capital into the Manitoba market
- The MFF had to spend time educating relevant parties about the new fund and its available options
The fund managers are not rushing into deals and want to ensure only good transactions are made
- No artificial deadlines have been imposed that would speed up closings, but the first deals are expected to close in the coming weeks
