I’m neither wise nor stupid enough to make predictions for 2012, but there are a few things I plan to keep an eye on. I’ve come up with a Top 10 list, even though there are many more irons in the Atlantic Canadian fire.
These are the stories I believe will dominate in entrepreneurship and investment:
1. That mountain of money in New Brunswick. The New Brunswick Innovation Foundation banked $9.2 million from the sale of Radian6, while New Brunswick Investment Management Corp. was an investor in Q1 Labs. The exits of those two companies, which together were rumored to be worth almost $1 billion, have rewarded dozens of angels. No one knows how much of this money will be rechannelled into new companies, but it’s likely to be significant. The funding stories in the New Year should be fun to watch.
2. The regional VC Fund. I’m not convinced it will start up on time on Feb. 1, but it will be interesting to see how it unfolds. Sometime in the New Year we should know whether Newfoundland and Labrador, Prince Edward Island, the federal government, and private investors will come in. We should also see a few investments and whether they can bring with them investors from other parts of Canada and the U.S.
3. Unique Solutions. After its successful launch in suburban Philadelphia, the Dartmouth, N.S.-based body-scanning company, which helps consumers find perfect-fitting clothes, raised $30 million and is rolling out its scanning booths across the U.S. The company was highlighted in a flattering feature last week in the McClatchy newspapers, which includes the Kansas City Star and the Fort Worth Star-Telegram. (Full disclosure: I’ve done work for and have invested in Unique Solutions.)
4. Next36. PropelICT’s ambitious accelerator program is accepting applications for the first five-month cohort. The New Brunswick tech community is bursting with energy and optimism, and few interesting companies will emerge from the program.
5. Equity tax credits. There’s massive demand for investment from angels, but in most cases investors only receive a maximum credit of about $50,000, and only if they invest in companies based in the province in which they live. The movement will intensify for a regional ETC worth as much as $250,000. Such a move would greatly accelerate the growth of the region’s fastest-growing companies.
6. Lymbix. Social media is all the rage, and Moncton-based Lymbix is one of the more interesting companies making inroads in this area; it analyzes the sentiment of people emails or posts. I have a sneaking suspicion that this is a company to watch closely.
7. Investment in Newfoundland and Labrador. The northeastern-most province has by far the strongest fiscal foundation in the region and a wealth of natural resources. It wants to diversify, and some fantastic companies are willing to help it thanks to an excellent support system to aid them. Some interesting deals will be percolating in St. John’s in the next 12 months.
8. Universities. Under the leadership of Chris Mathis, Springboard Atlantic is working on commercializing more university research. Universities are one of our region’s greatest resources, and more and more of them are spinning off innovative companies.
9. NACO Summit. The National Angel Capital Organization will meet in Halifax in November. These annual meetings are good in larger cities but tend to be more effective in a smaller centre. The First Angel Network crew has the energy and organization to make sure it will be memorable.
10. Silicon Valley. Jevon MacDonald of GoInstant snagged $1.7 million and the tech equivalent of a People’s Choice Award out of Silicon Valley in 2011. It’s worth wondering if other Atlantic Canadians can follow the example of this Halifax start-up.
It’s a lot to look for in one year. Good thing it has 366 days. Happy New Year.
