Innovacorp President and CEO Stephen Duff knows what the entrepreneurs he supports go through. When Duff was first involved with Precision BioLogic, the biotech startup got so behind on the rent the sheriff turned up to change the locks on the door.

Duff held business development and product innovation roles at Precision BioLogic for over 25 years. The Dartmouth-based company develops, manufactures and markets blood diagnostic products.

Today, Precision BioLogic sells its products across Canada, the U.S. and Europe. But there were hard times.

“When the sheriff turned up, we thought damn the torpedoes, we’ve got nothing left to lose,” Duff recalled.

“We started listening very carefully to clients and that was our salvation. It was a huge insight. We began listening and observing. The power of those two things unlocked a value proposition that gained traction in Canada and the U.S.

“It was an important part of my life. My mentor there, Michael Scott, was inspirational for my career.”

Duff also worked in sales and promotion with Organon Teknika Canada, a division of the Dutch diagnostics multinational Akzo.

Such experiences assist Duff at Innovacorp, where he helps early-stage Nova Scotia technology companies succeed in the global marketplace.

Innovacorp invests in early-stage companies that are too young to find funding from private venture capitalists. 

Long before he took up his present role with Innovacorp in April 2013, Duff was involved with Innovacorp as a board and investment committee member. He is also a past-president of BioNova, the Nova Scotia life sciences industry association.

He believes entrepreneurship will help solve Atlantic Canada’s economic problems.

Last year, Innovacorp made 12 investments in 12 companies, 10 of which were new to its portfolio. A typical investment is between $250,000 and $1 million.

“Our venture capital portfolio is growing,” Duff said. “We have 35 companies in the portfolio now. Most will fail, a couple will gain traction, raise more capital and eventually exit and some will limp along.

“I get excited about the fast-growers that raise more money and discover revenue and the ones that are killed quickly.” (Because the founders don’t waste time and money and can pursue other things.)

Duff is pleased by the diversity of companies growing in Atlantic Canada, and by the maturation of the entrepreneurs themselves, who often develop surprisingly swiftly.

“It doesn’t take a lot of great companies to change the dynamic, to make people want to be here,” said the New Brunswick native who holds a bachelor of science and an MBA from Dalhousie University.

Like many in the startup community, Duff believes greater cooperation among the

Atlantic Provinces will boost overall growth and prosperity.

Innovacorp works with groups such as Propel ICT, the New Brunswick-born accelerator that has become an important regional organization.

Innovacorp sometimes invests in graduates of Propel’s programs. This augments the funds the startups have already raised and supports Propel.

Cooperation also helps Innovacorp achieve more for its companies.

“Our portfolio is growing, but our resources are not,” Duff said. “We need to work smarter and forge partnerships where possible. We’re trying to add value to the companies we invest in.

“We want to provide not just equity, but also advice. We frequently find it externally by connecting with mentors.”               

Cape Breton is currently generating a healthy number of early-stage companies. This is due to various factors, including UIT, an immersion program for startups developed by entrepreneur Gavin Uhma and Cape Breton University’s Shannon School of Business.

Competitions also accelerate entrepreneurship.

In Cape Breton, Innovacorp’s Spark Cape Breton competition provides winning startups up to $50,000 in capital plus mentoring.

Nova Scotia startups can also compete for cash and in-kind services totaling $900,000 through Innovacorp's province-wide I-3 Technology Start-Up Competition.

“Entrepreneurs told us that just being in the I-3 Competition helps them learn how to think like a successful company,” Duff said.

“All these things help grow the sector.”

Full disclosure: Innovacorp is a client of Entrevestor.