MONTREAL, Jan. 11 /CNW Telbec/ - The Minister of Economic Development,
Innovation and Export Trade, Clément Gignac, announced the closing of
the Seed Fund Cycle-C3E and said it is now ready to invest in companies
specialized in the cleantech sector. The Minister was joined for the
occasion by Jacques Daoust, President and Chief Executive Officer of
Investissement Québec; Janie C. Béïque, Senior Vice President, Nouvelle
économie du Fonds de solidarité FTQ; and Andrée-Lise Méthot, Founder
and Senior Partner of Cycle Capital Management (CCM) Inc.
The fund aims to increase available capital for the early-stage
financing of companies specializing in clean technologies. This is one
of three seed funds in the technology sector announced by the Québec
"This seed fund will allow Québec to expand its venture capital offer
for cleantech companies. It is important that seed funding be allocated
to those firms interested in transitioning from basic research to the
application and commercialization of clean technologies. Growth in this
sector is worldwide, and the Government of Québec wants to innovate by
taking part in 'green' investments, which will help Québec companies
evolve," said Minister Clément Gignac.
The Seed Fund Cycle-C3E is managed by a seasoned team with extensive experience in financing
technology companies and a solid business network with venture capital
funds in Québec, Canada, and the United States. With the support of
industrial partners engaged in value creation, the Seed Fund Cycle-C3E
is able to complete the value chain to create thriving technology-based
companies. This ecosystem, unique to Cycle Capital Management (CCM),
provides the opportunity to close the gap between the technology
demonstration phase and commercialization.
"Cycle Capital Management (CCM) is delighted to welcome the Seed Fund
Cycle-C3E to its platform, which already benefits from the valuable
contribution of industrial partners to validate both the technology and
the market. Their contribution allows the portfolio to develop at an
accelerated pace. Rio Tinto Alcan, Lonza, Gaz Métro and Systemex are
the new industrial partners in this second fund and join the industrial
partners from the first fund, namely Brookfield Renewable Power,
Cascades and the Master Group. Additional sponsors include the Centre
d'excellence en efficacité énergétique (C3E), the Fonds de
développement économique LaPrade St-Maurice Inc. and Fondaction, le
Fonds de développement de la Confédération des syndicats nationaux pour
la coopération et l'emploi" notes Ms. Andrée-Lise Méthot, Founder and
Senior Partner of Cycle Capital Management (CCM) Inc.
Funding is provided by various limited partners, including the
Government of Québec ($16.5M), through Investissement Québec, the Fonds
de solidarité FTQ ($10.9M) and FIER Partenaires ($5.6M), for a total of
$33M. An additional $9M in private funding is provided by leading
industrial partners from Québec and abroad.
"As a sustainable development player since its creation, the Fund
recognizes the importance of establishing practices to protect the
environment and improve energy efficiency, and encourages Québec
companies to adopt such measures. With this in mind, the Fund became a
partner in the first Cycle Capital Fund I. Our investment in this
second fund is in response to an important need for financing
early-stage companies. We firmly believe that Québec can succeed in
this high-growth sector," says Ms. Janie C. Béïque, Senior Vice
President, Nouvelle économie du Fonds de solidarité FTQ.
The closing follows a rigorous process in which promoters were asked to
comply with specific conditions such as the signing of employment
contracts by key persons, due diligence and a Limited Partnership
Agreement signed by all investors involved in the fund.
The capitalization of this fund will be at least $41.5M, and this sum
will be invested in companies in Québec. The team at Seed Fund
Cycle-C3E can also raise additional funds from private investors for investment in
companies outside of Québec.
About seed funds for technology companies
In its 2009-2010 Budget, the Government of Québec announced the creation
of three seed funds for technology companies awarded by calls for
tenders. In so doing, the government aimed to increase available seed
financing for technology companies based in Québec, promote the
recruitment of experienced staff to manage these new funds, secure this
and other funding further up the financing chain, and broaden the range
of the seed financing sector in Québec.
The selection process was conducted by an independent committee of
industry experts chaired by Martin Godbout, former Chairman and CEO of
Seed funds invest in the first stage of business development. The
company may be in the process of creation or at the very beginning of
its activity, but its business model has not yet been validated.
Seed Fund Cycle-C3E is one of the three seed funds for technology
companies announced by the Government of Québec. On October 26, 2010,
Minister Clément Gignac announced the closing of Fonds d'investissement Réal, which specialized in information technology and was designed to
stimulate innovation and entrepreneurship.
About Cycle Capital Management (CCM) Inc.
A pioneer among Canadian venture capital funds in the cleantech sector,
Cycle Capital brings together a unique group of investment
professionals, strategic advisors and sustainable development experts
who have an in-depth knowledge of the clean technologies and business
sector. Cycle Capital Management supports the development of companies
by giving talented entrepreneurs access to its resources and an
innovative approach based on "lifecycle thinking," which enables them
to accelerate the adoption of their technologies by the market and to
become a leader in their sectors of activity. www.cyclecapital.com
About Investissement Québec
Investissement Québec's mission is to promote investment in Québec,
contributing to economic development and job creation in all regions.
Since its creation, the Society has allowed the realization of
investments of over $58 billion and the creation of nearly 179,000
jobs. For more information, please visit www.investquebec.com
About Fonds de solidarité FTQ
With net assets of $7.7 billion at November 30, 2010, this is a
development capital company that channels the savings of Quebecers. Its
investments in all economic sectors help to create and maintain jobs,
and further Québec's economic growth.
The Fonds de solidarité FTQ acts either as a direct partner or a partner
connected via its network of members in 2,052 enterprises. It includes
577,511 shareholders/owners and, alone or with other financial
partners, helps to create, maintain and protect 150,133 jobs. For more
information, please visit www.fondsftq.com
SOURCE Cycle Capital Management (CCM) inc.
For further information:
Department of Economic Development,
Innovation and Export Trade
|For more information:|
Fonds de solidarité (FTQ)
Seed Fund Cycle-C3E