capital

Montreal Mayor Denis Coderre launched Capital Intelligent Mtl – a 100 million CD (77.3 million USD) investment fund aimed at smart city startups and established businesses offering solutions to urban challenges that also will spur job creation in Montreal. The new public-private partnership will backed by 23 founding organizations including venture capital firms, financial institutions and corporations that have pledged over 100 million CD in private capital to establish the fund. In addition to the over 100 million CD from private sources, the city will commit 400,000 CD (309,000 USD) for the administration of Capital Intelligent Mtl through to 2018 with the intent of ensuring the coordination of the group's activities. While the management team of Capital Intelligent Mtl will oversee the day-to-day operations of the investment fund as well as pre-quality companies for investment, partners will be included in the final review of all investments. Capital Intelligent Mtl can make investments of up to 5 million USD (3.9 million USD) into individual companies. Read the press release…

In an attempt to support their respective  innovation economies, several countries have announced new national investment strategies and other entrepreneurial support efforts that help startups access the capital necessary to move their business from an idea to a sustainable businesses. Efforts include a fintech focused-fund in Ireland, expansion of existing programs in two Oceanian countries, and a partnership between two of Asia’s largest economies.

In the last month, major new developments have occurred in TBED capital programs. Launch Tennessee and Pittsburgh-based Innovation Works both announced positive findings about the growth of their startup investment ecosystems with $1 billion being raised by Tennessee startups from 2012 to early 2016 and over $279 million invested in Pittsburgh startups in 2015. Meanwhile in Ohio, both Youngstown-based and Cincy-based startups will see an influx of capital, while a new $150 million fund focused on stem cell companies and regions has been launched.

Angel investors are an essential component of the global economy, supporting ideas and innovators at their very earliest stages. In 2014, more than 200,000 American angels invested about $24 billion in 73,000 startups, according to the Angel Capital Association (ACA). Little data, however, exists on who these investors are and how they make their decisions. ACA, Wharton Entrepreneurship and the John Huston Fund for Angel Professionalism at Rev1 Ventures are launching a nationwide survey of angel investors to learn more. Angels who take the survey will be eligible to be in a drawing to receive complimentary tickets for angel education events, including the 2016 ACA Summit, May 9-11, 2016, in Philadelphia. The survey is available at: http://www.theamericanangel.org/

Over the last month, several universities have announced new initiatives that look to spur investments in university-related startups to support economic growth and prosperity within their region or state. These include efforts in Triangle Venture Alliance in North Carolina, Purdue Ventures in Indiana, and a partnership between Oregon State University and a local investment fund.

More than three-quarters of U.S. venture capital dollars went to companies in California, New York and Massachusetts in 2015, according to data from the PricewaterhouseCoopers (PwC)/National Venture Capital Association (NVCA) Moneytree Report. California companies received over 57 percent of all U.S. investment, about 0.5 percent down from the state’s peak in 2014. Both New York and Massachusetts received about 10 percent of U.S. dollars. Washington, the state with the fourth highest share, trailed far behind at 2.1 percent. California and Massachusetts also both led in venture capital dollars per capita, taking in about $860 and $841 per resident, respectively. Massachusetts continues to lead the nation in deals per capita, with about 6.5 per 100,000 residents.

In the last month, several international countries and Hong Kong have made significant monetary contributions to establish investment funds that will make strategic investments in their country’s startups. These investment funds have a two-fold focus. First, they want to help provide early stage capital to companies that have the potential to spur economic prosperity within their borders. Second, they want to help make their companies more appealing to foreign investors.

Despite a small decrease in venture capital deals last year, the San Francisco-Oakland-Fremont metropolitan area remains the most active investment regions on a per capita basis, according to data from the PricewaterhouseCoopers (PwC)/National Venture Capital Association (NVCA) MoneyTree Report. San Francisco led all other MSAs in both total dollars and per capita activity, with its $21 billion in 2015 investment averaging about $4,500 per metro resident. NVCA notes that 133 metros were home to deals in 2015, an encouraging sign that opportunities are opening up in areas outside of the known hotspots.

Technology companies raised $225 million globally on rewards-based crowdfunding sites in 2015, according to a new report from the UK-based Crowdfunding Centre. In State of the Crowdfunding Nation, the Crowdfunding Centre reported that reward-based crowdfunding sites helped raise over $1.5 billion worldwide between the calendar years of 2014 and 2015. Global rewards-based crowdfunding campaigns raised $823.5 in 2015 million (a 20 percent increase over 2014) from nearly 10.2 million backers. In the United States, approximately 20,000 fully funded campaigns raised over $590 million in the United States in 2015. When broken down by category, tech companies attracted the most funding from backers and on average raised over $51,000 per campaign. In addition to tech companies, video games companies raised over $47 million in 2015 using reward-based crowdfunding sites. Download the report (purchase required)

This week, leaders in Illinois and New Mexico announced new investments to help seed and early stage technology startups access equity capital. The Illinois Treasurer will launch the Illinois Growth and Innovation Fund, which would invest $220 million over the next three years in 15-20 funds across the state. No more than 15 percent of the money will be placed with any particular fund. The state’s investment will target emerging tech companies, beginning later this quarter. New Mexico plans to launch a $40 million fund-of-funds, dubbed the Catalyst Fund. The state will target micro-funds in New Mexico, which must be able to match the state’s investment. The State Investment Council hopes the effort will double the amount of seed and early stage funding available in the state, according to the Albuquerque Journal.