Question: How were the fund managers selected?
BCRCF makes capital commitments to venture capital funds managed by professional venture capital fund managers. To be eligible, a fund manager must have a demonstrated track record of successful investment in technology companies in one or more of the key target sectors: information technology, new media, clean technology and life sciences.
Funds were selected through an open tender (RFQ) process.
Question: Why not fund companies directly? Why fund a “middle man”?
Funding venture capital fund managers offers benefits to tech companies that go well beyond the cash flow. The fund managers that our investments flow through are known quantities in the venture capital community and provide critical links to Silicon Valley. Companies that receive investments from qualified venture capital firms, in effect, receive a “good housekeeping” seal of approval making them a more attractive investment target for other investors.
Question: What is the Fund performance?
Key performance indicators of the fund include the volume and ratio of venture capital that has been attracted to BC through our investments and the number of new technology sector jobs that BCRCF funding creates in BC.
Unlike buying bonds or stocks on a public exchange, the return on venture capital investment comes when a company gets bought or goes public with stock. Before then, we measure our success in investment dollars leveraged and jobs created – two areas where we have made substantial gains. Over the ten-year investment cycle that is typical in venture capital investing, we fully expect to see the return on our investments with our eight funds increase.
Capital attraction: We have an impressive five to one ratio of capital attraction. Our $67 million investment has been leveraged into $351 million of private venture capital invested in B.C.’s tech sector. In 2014 the top three venture capital deals in Canada were in B.C.
Job creation: We have created over 1,050 new jobs in B.C. through our initial investments. They come from companies like Richmond-based Cooledge Lighting and Sologear Bioplastics in Vancouver – companies that have benefited from BCRCF fund manager investments.
Question: Why are there fewer jobs accounted for in the BC portfolio fund reporting on the website? BCRCF Fund Managers claim to have created over 1,050 new jobs for BC’s technology sector.
BCRCF Fund Managers have created over 1,050 net new technology jobs in British Columbia by investing in BC companies over the total lifetime of the fund. The job count in the BC Portfolio includes only those companies that are in BCRCF Fund Manager’s portfolio today. Companies that are not featured in the current BC Portfolio have “graduated” from Venture Capital portfolios through IPOs, acquisitions, mergers or other exit strategies.