Newfoundland and Labrador Startups in the PropelICT Build Program are now eligible for $250,000 in investment funding from the Venture Newfoundland and Labrador fund, the parties announced today.

Propel, the Atlantic Canadian accelerator, issued a statement saying Pelorus Venture Capital, the private-sector manager overseeing the Newfoundland fund, has approved the new funding initiative. The news means that startups from three of the four Atlantic provinces can qualify for two tranches of funding if they complete the Build Program.

“Propel ICT is an important part of the startup ecosystem in Newfoundland and Labrador,” said Tom Hayes, Managing Director of Pelorus Venture Capital. “Formalizing our relationship with this accelerator sets the stage for investment in graduates of Propel ICT’s Build program, supporting their business and growth agenda.”

Propel operates two concurrent programs – the Launch program for novice entrepreneurs, and Build for more advanced companies. Through the programs this summer, there are six startups in Build, including HeyOrca! from St. John’s.

Though Propel does not invest in the startups that go through its programs, it does allow for the companies to receive funding from its financial partners.  These arrangements include:

-- BDC Capital will invest $150,000 (or $250,000 for hardware companies) through a convertible note. This offer extends to Build participants from all four Atlantic provinces. Twelve companies so far have received funding through this program.

-- The New Brunswick Innovation Foundation and Innovacorp offer $100,000 in convertible notes to Build grads from New Brunswick and Innovacorp respectively.

-- And now Venture NL is offering $250,000 funding to grads from Newfoundland and Labrador.

What it means is that Build grads from P.E.I. have an opportunity to receive $150,000, from N.S. and N.B $250,000 and from NL $400,000. All the funding is at the discretion of the funders, and graduation from the Build program does not guarantee the participant will receive investment.  

Venture Newfoundland and Labrador is a new VC fund supported by the Government of Newfoundland and Labrador, BDC Capital, Pelorus Venture Capital and local angel investors. It will soon announce its first funding.

“The relationship with Pelorus Venture Capital is important to our programming in Newfoundland and Labrador,” said Gary Dinn, the St. John’s-based CEO of Propel ICT. “Creating a pathway to significant investment capital is key to supporting startup companies in this province.”