Up to $1.85 million in taxpayer funding has been injected into Ottawa startups and a local angel network, a government agency announced Friday.
The funds are part of the government’s investment-matching program called the Federal Economic Development Agency for Southern Ontario, known as FedDev Ontario, and are expected to leverage up to $4.42 million in angel investment and venture capital financing.
As a result of these funds, the tech companies are expected to create up to 44 full-time jobs in the region, with an additional 67 jobs by 2016.
Ottawa-Orleans MP Royal Galipeau made the announcement at an event Friday morning.
“By investing in the innovations of entrepreneurs in Ottawa, we are strengthening relationships between startup companies, investors and the government, and we are equipping businesses with the tools they need to succeed,” Mr. Galipeau stated in a press release.
Through FedDev’s Investing in Business Innovation initiative, the following local firms will receive funding:
- 360pi Corp. (formerly Gazaro Inc.) will receive up to $750,000 to develop additional features for its software platform providing real-time price and product intelligence to retailers and manufacturers. The firm has recently attracted $1.72 million in investment from York Angel Network, the Capital Angel Network, MaRs Investment Accelerator Fund and Ontario Centres of Excellence. Throughout this development stage, the company expects to create up to 13 full-time jobs, with up to 59 additional jobs by 2015.
- Source Metrics, which recently rebranded itself from Swix, will be granted up to $500,000 to integrate its social media solutions with additional features that large businesses can use to measure the impact of their social media marketing. The funding comes after the company attracted $1 million in venture capital investment from GrowthWorks. Source Metrics plans to hire up to 22 additional full-time employees later this year, with an additional eight jobs by 2016.
- Therapeutic Monitoring Systems is set to gain up to $500,000 to accelerate commercialization for its clinical decision support software used in critical care medicine. The firm recently attracted $1.7 million in funding from Genesys Capital, the MaRs Investment Accelerator Fund, the Queen’s School of Business TriColour Venture Fund and the Health Technology Exchange. About nine full-time jobs are expected to be created as a result of this funding.
- Up to $100,000 will be provided to the Capital Angel Network, which connects angel investors and entrepreneurs in the Ottawa area. The funds will be used to develop an interactive website, best practice training materials, recruiting and training seminars and promotional tools. The goal is to attract a broader diversity of investment opportunities and an additional 60 investors to the network within the next two years.
Last month, six local tech startups were provided with a combined $3.67 million from the same government program.
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, although critics say regional economic development programs such as FedDev involve government officials picking winners and losers with little net benefit.