Province and Island businessmen team up to help entrepreneurs

Four Island businessmen have partnered with the P.E.I. government toestablisha new $4 millionangel seed investment fund.

AlexMacBeath, RonKeefe, SteveNicolleandPaulLypaczewski formed a company called Island Capital Partners andhave raised $2 million dollars, which the province has matched.

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Start-ups and early stage businesses that havea proven idea that is ready to be brought to market can apply for funding between $150,000and $500,000.

The four investors will decide which applications to approve, and will also act as mentors, offering expertise from seasoned business people.

'The next step'

Economic Development Minister Heath MacDonald said the fund is another way to encourage entrepreneurship in P.E.I.

"It was initiative, I think, of government to say 'You know what, we need to do something here to help our smaller companies grow.'"

MacDonaldsaid the province has used alternate forms of providing money to small businesses through its micro-loan program as well as the Ignition Fund.

"We've done everything that possibly a government could do, I believe, in that regard, as far as the lendingside, but this is the next step."

Following suit

Partnerships between private investors and provincial governments is becoming more common.

MacDonaldreferenced Nova Scotia and Newfoundland and Labrador as provinces with similar investment strategies.

"I think if we're going to be in the game to support our entrepreneurs, I think this has to be the way to go," he says.

Island Capital Partners isnot accepting applications yet.

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