Invest Nova Scotia — Investment

This investment provides strategic financing options to enhance the growth potential of Nova Scotia-based high-growth start-ups. The funding terms ensure alignment with industry standards and collaboration with various partners.

• Investments are made alongside private and public limited partners, following standard industry terms.
• The maximum investment from Invest Nova Scotia is up to 25% of the fund's total committed capital, capped at $10 million.
• Management fees and carried interest apply as per standard industry practices.

The eligibility criteria for this grant require venture capital funds to meet several key conditions.

• Applicants must be venture capital funds that are currently raising a venture capital fund.
• They must commit to deploying 100% of Invest Nova Scotia’s investment in Nova Scotia-based high-growth start-ups.
• The funds must be committed to maintaining a Nova Scotia presence to develop a pipeline of Nova Scotia-based start-ups and current investment opportunities.

Who is eligible?

Eligible expenses

This fund investment aims to bolster Nova Scotia's venture capital ecosystem through collaboration with venture capital funds. The eligible activities are centered around investing in and nurturing high-growth start-ups within Nova Scotia.

• Investing in high-growth start-ups based in Nova Scotia to help them scale and succeed.
• Fostering diverse and sustainable portfolios of venture capital funds in Nova Scotia.
• Attracting additional capital through partnerships with other venture capital entities.
• Focusing on start-ups from underserved regions or those led by underrepresented founders in Nova Scotia.
• Developing infrastructure and resources required for a vibrant local venture capital market.

Eligible geographic areas

This grant supports venture capital funds investing in Nova Scotia-based high-growth start-ups. Eligible geographical areas focus on fostering economic growth within Nova Scotia.

• Investments targeting high-growth start-ups located within Nova Scotia.

The evaluation and selection of venture capital funds for investment by Invest Nova Scotia are based on the following criteria to strengthen the venture capital ecosystem in the province.

• Management: fund management or venture investing experience; operational experience; investment and sector networks; demonstrated track record; expertise and skillsets; diversity; team composition; succession plan.
• Investment Thesis: investment strategy; unique competitive advantage or differentiator; deal flow; governance structure including due diligence, selection and approval processes.
• Fund Structure: management fees; compensation structure; governance and reporting frameworks (e.g., investment committee and limited partner advisory committee); ESG and DEI strategies.
• Traction: market validation; committed and pipeline capital; investments made to date; fundraising strategy.
• Nova Scotia Impact: strength of Nova Scotia presence; focus on key strategic sector(s); focus on underserved founders or regions; ability to attract outside capital via limited partners and co-investors.

Invest Nova Scotia offers venture capital funds investing in high-growth start-ups access to investments with a focus on developing the venture capital ecosystem in Nova Scotia.

• Focus on strengthening Nova Scotia’s venture capital ecosystem
• Increase venture capital available to Nova Scotia’s high-growth start-ups
• Diversify access to venture capital
• Evaluation includes fund management experience, investment thesis, fund structure, and Nova Scotia impact
• Commitment to deploying 100% of Invest Nova Scotia’s investment in Nova Scotia-based high-growth start-ups
• Maximum investment size is up to 25% of total committed capital in a fund, up to $10 million