Cape Breton Capital Group has launched a new $1.2 million angel investment fund focused on early-stage companies with connections to Cape Breton.
The Cape Breton Future Fund, or CBFF, will invest in qualifying small businesses that are registered in Nova Scotia and have a meaningful connection to Cape Breton. That connection can include research and development activity, executive leadership, a headquarters location, or local employment and wages, said the company in a press release.
The fund is backed by 22 angel investors, including 11 who are joining Cape Breton Capital Group for the first time. The investors bring experience in areas including entrepreneurship, technology, operations, finance and sector-specific expertise.
“The creation of the Cape Breton Future Fund is a testament to the belief our angels have in supporting the continued development of startups connected to Cape Breton,” Cape Breton Capital Managing Director Paul Harrington said.
The organization said the CBFF, its second fund, has already invested in four companies:
- Aeon Blue Inc. – This Sydney-based company is developing technology that delivers sustainable e-fuels while simultaneously capturing carbon dioxide and generating high-value co-products. In May, Aeon Blue was named the Startup Venture of the Year at the Canadian Cleantech Awards.
- SEVO Biosciences Inc. – SEVO is developing oral aquaculture vaccines using engineered microalgae. delivery systems
- BryoSphere Biotechnologies Inc. – This company manufacturers skincare products using chemicals found in moss. It says its proprietary moss biomanufacturing platform enables production of high-quality bioactive ingredients at large scales.
- And alterBiota Inc. -- Sydney-based alterBiota has developed a concrete additive, deltaC, made with biochar, a carbon-rich material produced from forestry byproducts. The company said last December the product had graduated from the R&D phase to commercial production as construction industries sought lower-carbon materials.
Harrington also credited Nova Scotia's Venture Capital Tax Credit (VCTC) with helping the group attract private investment.
“The VCTC played a meaningful role in helping us attract investors and provide critical early support to startups through private investment,” he said.
The fund continues the investment mandate of Cape Breton Capital Group's original fund, supporting early-stage businesses with roots or other significant connections to Cape Breton while they develop markets beyond the region.
Cape Breton Capital Group is already looking ahead to another fund. The group said it is seeking to establish a third investment vehicle focused on businesses connected to rural Nova Scotia.
