Startup community vets Rob Barbara and Gillian McCrae highlighted concerns about two parts of the funding regime in Atlantic Canada during a talk at Volta last week – a discussion that’s available online.
McCrae, Venture Manager at Creative Destruction Lab Atlantic, and Build Ventures Partner Barbara were panelists at a Your Ecosystem fireside chat. You can view the whole discussion on Volta’s Facebook Page.
In the course of the discussion, they touched on two areas of funding that are of interest in Atlantic Canada: the eight-figure rounds that go to super-promising companies; and the state of angel funding in Atlantic Canada.
On the B or C rounds, the panelists agreed that there are only a few companies in the region with the fire power to convince investors from outside the region that they would use tens of millions of dollars wisely.
“These companies should be at a state where they can show they can take a dollar and turn it into a multiple of dollars, and that’s really hard to do,” said McCrae. “We’re still at an early stage there.”
They also addressed worries over angel funding, now that the First Angel Network has closed down. Barbara admitted that angel investing is “an area of concern” in Atlantic Canada, adding that the community needs companies to get the $100,000-$200,000 funding rounds to get off the ground. It’s a necessary building block to getting the companies to a stage at which funds like Build can consider investing in them.
This is just a glimpse of the discussion and it’s worth taking a listen to the full chat.
Volta is aiming to host Your Ecosystem chats once a quarter, to bring forward experts in high growth companies and generate discussion on hot topics in the community.