The startups are expected to leverage up to $9.8 million in angel and venture capital investments as a result of the infusion of public funds, according to the Federal Economic Development Agency for Southern Ontario, known as FedDev Ontario.
Local MP Gordon O’Connor said in a statement that federal funding “will help startup businesses increase their international market share and create jobs in the Ottawa area.”
Through FedDev’s Investing in Business Innovation initiative, the following companies will receive funding:
- BLiNQ Wireless Inc. will receive up to $984,667 to complete development and commercialization of its backhaul network. As a result of the FedDev funding, the company has attracted up to $4 million in venture capital investment from Summerhill Venture Partners, Business Development Bank of Canada Venture Capital and New Venture Partners.
- eSight Corp. will receive up to $950,000 to complete development of its eyewear fitted with assistive technology designed for people with low vision. The company has attracted up to $3.4 million in angel investment from members of Boston Harbor Angel, Capital Angel Network, the Golden Triangle AngelNet and Angel One Investor Network.
- Impakt Protective Inc. will receive up to $500,000 to develop new features and conduct research and development for its sensory technology systems which measure the risk of concussion. The company has attracted up to $1 million in angel investment from members of the Capital Angel Network.
- Magor Communications Corp. will receive up to $500,000 to develop a version of its visual collaboration workspace that will be more accessible to small businesses. The company is looking to close a funding round of up to $1 million in angel and venture capital investment from members of the Southwestern Ontario Angel Group and Wesley Clover International Corp.
- Fusebill Inc. will receive up to $450,000 to develop enhancements and complete commercialization of its automating bill payment software platform for subscription-based companies. Because of this funding, Fusebill has been able to attract up to $900,000 in venture capital and angel investment from Covington Funds and members of the Capital Angel Network.
- ThinkRF Corp. will receive up to $287,500 to enhance and upgrade its software-based wireless radio frequency receiver for improved compatibility with mobile devices. The company has been able to attract up to $575,000 in angel and venture capital investment from members of the Capital Angel Network and the Wesley Clover International Corporation.
The six companies expect to create up to 123 full-time jobs in the local area as a result of the funding, with an additional 202 jobs by 2017, according to the release.
The Investing in Business Innovation initiative is designed to boost private sector investment in startup businesses to accelerate their development and help bring them to market.
Critics say regional economic development programs such as FedDev are a poor use of taxpayer money that involves government officials picking winners and losers with little net benefit.