Indie game accelerator Execution Labs is now a participant in BDC Venture Capital’s convertible note program, which offers $150,000 convertible notes to select graduates of Canada's top-rated accelerators.
According to Execution Labs, the funding, which is structured like a loan at the time of the investment, is meant to help new studios "weather a period that can be very tough for them financially, as they continue working to generate revenues and to position themselves to successfully raise subsequent financing from other investors." The notes later convert into equity when studios raise their financing.
"Game development has for years been an important part of Canada’s technology ecosystem. We are excited to partner with Execution Labs and look forward to helping the best studios coming out of XL fulfill their potential to power our games economy," said Senia Rapisarda who is the vice president of strategic investments and initiatives at BDC Venture Capital.
"The capital we provide during the course of the program is really designed to fund the teams' game development and initial go-to-market efforts. The BDC Venture Capital convertible note program now gives our graduating studios time to continue running their games as a service and ramp their revenues after they leave XL," explains Jason Della Rocca, a cofounder of the accelerator.
"In addition to giving our teams more time to get traction, having a note in place from a reputable investor like BDC Venture Capital makes it easier for them to attract additional financing to expand their studios and release more games," he added.
Execution Labs says that its current cohort will be eligible for the notes as well as future cohorts. it's the fifth accelerator in Canada to participate in the program. Other accelerators that offer BDC notes include Vancouver's Growlab and Montreal's Founderfuel.