Innovacorp, the venture capital and innovation agency owned by the Nova Scotia government, sank $5.6 million into startups in its 2016-17 fiscal year, continuing at the same pace as the previous three years.

The agency released the numbers last week in its annual accountability report, which outlines its finances and investments in the 12 months that ended March 31.

Last year at this time, Innovacorp was warning that it might have to fund its investments in the future from exits as its Nova Scotia First Fund was running out of money. But the province in October freed up $40 million to refinance the fund, ensuring several more years of investment. And the Crown corporation said Nova Scotia still has a way to go to reach the national average in terms of investment in innovation.

“Although per capita venture capital in Nova Scotia has surged from $19 to $54 to $67 over the past three years (adjusted for population growth), the Canadian average has demonstrated parallel growth from $53 to $64 to $88,” said the report. “This leaves a gap of $21 per capita, or 24 percent, between the Nova Scotian and Canadian averages.”

Last year, Innovacorp said it had averaged $5.6 million per year in venture capital investment over the previous three years. It maintained the level in 2016-17, as it made 13 investments in 12 companies. Some $4.7 million of this money, or 84 percent, was follow-on investment in companies already in its portfolio.  Two of the companies receiving money were new to the portfolio.

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The two largest investments were to materials company Metamaterial Technologies with $1.5 million, and life sciences company ABK Biomedical, which received $1.1 million.  

“Innovacorp said the 13 investments also attracted an additional $18.3 million in venture capital and private equity investment, most of it from outside Nova Scotia,” said the report. “Innovacorp’s other portfolio companies raised a further $18.6 million through deals in which Innovacorp did not participate.”

Innovacorp said that $175,000 in advances in the last fiscal year include second tranches paid to Island Water and Vendeve in previously approved deals.

The biggest surprise from the document is that it revealed the price of the Analyze Re exit. The company received US$9.5 million ($13 million) when it sold out to Jersey City, N.J.-based data analytics company Verisk Analytics in October.  In total, the Nova Scotia First Fund received about $2.54 million from exits, secondary share sales, dividends and interest.

The following are the Innovacorp investments for 2016-17:

Innovacorp said tha as of March 31, 2017, the NS First Fund had a carrying value of $31.4 million, including its investments in venture capital funds Build Ventures and Cycle Capital Funds I & III. The fund had $10.5 million in commitments, and $66 million available for new and follow-on investments in promising Nova Scotia start-ups (including $25 million for a new technology seed capital investment fund). Innvoacorp is overseeing the backing of a new fund to be located in Halifax, which would invest mainly in Atlantic Canadian companies. The selection committee has been reviewing a handful of companies, and is expected to make an announcement within a few months. 

Innovacorp is now conducting a search for a new CEO as the current holder of that position, Stephen Duff, has told the board he will not seek a second five-year term. 

Disclaimer: Innovacorp is a client of Entrevestor.