Techvibes has learned that BDC Venture Capital, Canada’s largest institutional venture capital investor, has invested in all four of GrowLab's most recent graduating startups.
BDC is injecting $150,000 in seed funding in each startup: ePACT, Procurify, SpaceList, and KarmaHire. From what we hear, the startups had the option to turn down the funding, but all four accepted.
“This seed investment is meant to help these promising companies keep going while they work towards a more substantial second round of financing,” says Senia Rapisarda, Vice President of Strategic Investments and Initiatives at BDC Venture Capital."The companies are now well equipped to further refine their product and grow their number of customers."
The investments come in the form of convertible notes, which are short term loans that are usually converted into shares later on in the company’s life. To date, $5.7 million has been provided by BDC Venture Capital in convertible notes to 38 Canadian startups, including $1.95 million to 13 GrowLab graduates since the accelerator’s first cohort in 2011.
“BDC Venture Capital has played a real leadership role in advancing accelerators in Canada,” says Mike Edwards, GrowLab’s Executive Director. “Ultimately, this is great news for the entire startup ecosystem.”
And here's a quick brush-up on the four recent GrowLab grads BDC has invested in:
• ePACT is a LinkedIn for emergency networks tracking to 2.5 million users by end of year one that has already raised $800,000 and is looking to raise $2 million (ePACT's Christine Sommers pictured).
• Procurify is a spend management solution for organizations of all sizes that has secured a $400,000 investment from Mark Cuban.
• SpaceList is an MLS for commercial real estate, hosting over 60 Million square feet of space for lease. Having secured $400,000 to date, SpaceList is currently raising a $500,000 seed round.
• KarmaHire is an optimized hiring platform that creates high-converting recruiting pages in minutes.