One of the overlooked segments of Premier Stephen McNeil’s State of the Province speech last week was his revelation that Nova Scotia will soon proceed with a new public-private venture capital fund.

On Feb. 11, McNeil delivered his address to the Halifax Chamber of Commerce, and the focus was on the need for change, reinforcing the theme of the Ivany report.

But he also noted that the province would soon release a request for proposals for a private-sector venture capital partner to manage a fund that would be financed in part by the province. The announcement is a followup to the statement last July by Michel Samson, the minister responsible for economic development, that the province hoped to seed a new venture capital fund based in the province.

What we’re witnessing is the evolution of a three-pronged approach to funding high-growth companies by the Nova Scotia government.

Last summer, Samson decreed that Innovacorp would be the provincial agency making venture capital investments, with a special emphasis on simplified seed-funding rounds of less than about $250,000. Nova Scotia Business Inc. would not make new venture capital investments, though its previous investments have remained housed under the NSBI umbrella.

The second pillar is Build Ventures, the privately managed $60-million fund that has drawn most of its funding from the four Atlantic provinces. Nova Scotia and New Brunswick have each invested $15 million.

The fund invests in more developed companies, so far in increments of $1.5 million to $3 million.

The third pillar will be the fund that will result from the request for proposals, which should be released within weeks. What it will look like will depend on the wording of the request and the responses it draws.

Judging from the premier’s and Samson’s remarks, it appears that the wording will be broad enough that responding firms can show some creativity in submitting proposals. The considerations will probably include what sectors will be the focus of the fund, how it will expand investment expertise in the region and what international networks the private-sector partner brings.

The government has mentioned a private-public collaboration, so it seems likely that a key factor will be how much money the venture capital manager puts into the fund. This will probably be subject to some negotiation because private investors would want the fund to be able to invest beyond Nova Scotia.

Samson has said he’s interested in the recent model of the Venture Newfoundland and Labrador fund, in which the provincial government and the Newfoundland and Labrador Angels Network together put money in a fund managed by GrowthWorks Atlantic.

McNeil seemed to suggest the request for proposals will leave the door open for venture capitalists in the region to compete for the contract. It makes sense, given the heightened interest of international funds in companies in the region.

Rho Canada Ventures, based in Boston and Montreal, has invested in four Atlantic Canadian companies in the last two years. And last year, Intel Capital sank money into Reno Sub-Systems, whose global headquarters is in Nova Scotia.

The thinking is that the array of high-growth companies in the region is diverse enough for a new funding vehicle.

Disclaimer: Entrevestor receives financial support from government agencies that support startup companies in Atlantic Canada. The sponsoring agencies play no role in determining which companies and individuals are featured in this column, nor do they review columns before they are published.