Eight Ontario start-ups receive $6 million in funding from the Investment Accelerator Fund
Toronto, July 27, 2011—Eight Ontario companies have received more than $6 million in seed and later stage financing from the Investment Accelerator Fund (IAF), a program that invests in eligible companies as they develop their technologies and bring their products or services to market.
The IAF supports the launch and development of innovative companies in Ontario’s priority sectors of advanced materials and manufacturing, information technology, cleantech and life sciences. The IAF is funded by the Government of Ontario and delivered by MaRS.
The IAF is committed to investing $500,000 in each of the following companies:
- GridCentric: Two groundbreaking technologies: one supports cloud computing, while the other cuts the number of servers needed in client/server IT setups.
- Karos Health: Creating an exchange network to improve electronic ordering and results distribution of diagnostic imaging tests between client hospitals, imaging centers and radiology reading services.
- Locationary: Locationary is now commercializing its sophisticated cloud-based, local data management system that helps mobile and web publishers improve quality while reducing the costs and complexity of managing local business places data.
- Temporal Power: Develops and manufactures electrical energy storage systems that use a breakthrough flywheel technology. The technology is aimed at helping the electrical utility industry modernize the grid, integrate wind and solar power and better utilize water for generating clean power.
The Investment Accelerator Fund-Life Sciences (IAF-LS) helps accelerate the growth of life sciences companies in Ontario. The fund invests up to $1,000,000 in seed and later stage financing in companies that have the potential to be global leaders in their field and provide sustainable economic benefits to Ontario. Funded by the Government of Ontario, the fund helps innovative life sciences companies turn their discoveries into new products and services that meet patient needs.
The IAF-LS is committed to investing up to $1,000,000 in each of the following companies.
- Cytochroma Inc.: A pharmaceutical company that is developing and commercializing products to treat and prevent vitamin D insufficiency and secondary hyperparathyroidism associated with chronic kidney disease.
- Profound Medical Inc.: An award-winning medical device company commercializing a device that accurately and precisely treats localized prostate cancer on an out-patient basis.
- Trillium Therapeutics: Developing a new and innovative treatment for interstitial cystitis, a chronic and debilitating bladder disease that affects millions of women in North America.
- Xagenic Canada Inc.: Commercializing a low cost, chip-based diagnostic testing system that can detect and identify germs within 30 minutes, right at the point of care (no lab required).
These investments, generally made in the form of a convertible debenture or as an equity investment, will help the companies develop their products or services and attract additional investment. Funding and support from the IAF and IAF-LS will help these innovative companies save lives, protect the environment and introduce new technologies.
“The IAF is proud to support these early-stage companies. Their innovative technologies, products and services mean that the strong management teams are capable of building businesses with sustainable competitive advantages,” says Barry Gekiere, IAF Managing Director. “We support our portfolio companies with access to capital and a network of market and sector connections. By partnering with these companies and helping them grow, the IAF is helping to create high-value jobs that contribute to Ontario’s innovation agenda.”
“We are thrilled to have MaRS and the IAF as investors and appreciate their help and guidance as we commercialize our new data management services”, says Grant Ritchie, CEO of Locationary. “The whole team was responsive, professional, and frankly, absolutely incredible through the entire investment process. They are great ambassadors for Ontario and play a major role in supporting the start-up tech community here.”
“We are absolutely delighted to have received this investment from IAF. Their team was comprehensive in their diligence, quick in their decision and is already contributing strategically to the direction of the company. We couldn’t be happier to have them as investors,” says Paul Chipperton, CEO of Profound Medical.
About the Investment Accelerator Fund
The Investment Accelerator Fund (IAF) provides up to $500,000 in seed funding to qualified emerging companies in Ontario. As a critical component of the Ontario Network of Excellence (ONE), the IAF supports the launch and development of innovative companies in Ontario’s priority sectors of advanced materials and manufacturing, information technology, cleantech and life sciences. The IAF is funded by the Government of Ontario and delivered by MaRS.
About Investment Accelerator Fund-Life Sciences
The Investment Accelerator Fund-Life Sciences (IAF-LS) helps accelerate the growth of life sciences companies in Ontario. The fund invests up to $1,000,000 in seed and later stage financing in companies that have the potential to be global leaders in their field and provide sustainable economic benefits to Ontario. Funded by the Government of Ontario, the fund is a $7 million program that helps innovative life sciences companies turn their discoveries into new products and services that meet patient needs. The IAF-LS is delivered by MaRS.
MaRS Discovery District is a large scale, mission driven innovation centre located in Toronto and networked across Ontario, focused on building Canada’s next generation of technology companies. MaRS works closely with entrepreneurs to grow and scale their ventures into global market leaders in life sciences and health care, information, communications and entertainment technologies, cleantech, advanced materials and engineering, as well as innovative social purpose businesses.
For more information, please contact
MaRS Discovery District
416-673-8100 x 8104