Chinese investor Victor Chu is heading a new $50 million venture capital fund to be established in Nova Scotia, which will invest in growth-stage companies.
Premier Stephen McNeil announced the fund in a press release on Tuesday, saying it would be backed entirely by private investors led by Chu, the head of First Eastern Investment Group.
Little is known about the new fund, such as what segments it will target and whether there will be a manager based in the province. A spokesperson in Hong Kong was unable to provide more details.
"I am delighted to launch this investment and partnership initiative to support small and medium-sized enterprises in Nova Scotia to expand their businesses into the vast Asian markets," said Chu in a statement. "We have a wonderful track record in helping European SMEs to grow into Asia, and I am sure we will achieve similar 'win-win' successes with companies from Nova Scotia."
Hong Kong-based First Eastern has traditionally invested in manufacturing, construction, infrastructure, financial and real estate industries. But according to the Crunch Base databank, its investments in the past have included participation in the $5 million venture round of London-based Tamoco, a mobile proximity technology company.
Chu was introduced to Nova Scotia and its premier by John Risley, the chairman and founder of Clearwater Seafoods and the Founder of Ocean Nutrition Canada, which exited for $540 million two-and-a-half years ago.
Last May, Chu visited Nova Scotia, visiting the Dalhousie University ocean sciences facility and meeting regional business people, including representatives of the startup community.
Roger Taylor reported in the Chronicle Herald at the time that Risley gave Chu a list of about 20 companies that could be potential investment targets, and Chu trimmed the list to seven. He was to meet with those companies at the time.
McNeil said he met with Chu in China in September and the plans for the new fund were finalized at a meeting in London last weekend.
One of the tremendous benefits of the fund will be the help Chu will offer in introducing Nova Scotian companies to the Chinese market. The market is obviously vast and it’s always best to work with local partners when making sales in the Middle Kingdom.
The creation of Chu’s fund continues the growth of funding options for East Coast startups. In the past two years, Build Ventures has been established with commitments of more than $50 million. The Newfoundland and Labrador government is working with GrowthWorks Atlantic and BDC Capital on the establishment of Venture Newfoundland and Labrador for seed-stage companies.
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