Genesis Microfund Yields Impressive Results
A little more than a year after Genesis announced its $775,000 microfund for Enterprise clients, the fund is proving that access to early money results in new jobs, increased revenues and more investment opportunities.
In January 2019, the microfund was launched as a way of giving a boost to young startups first entering the program. Genesis, along with microfund donors, wanted a new way to invest in the future of tech with this non-repayable fund. The Government of Canada, through the Atlantic Canada Opportunities Agency, contributed $300,000 toward the initiative while the provincial government invested $125,000. After closely monitoring their progress, 18 companies that each received $20,000 from the fund have collectively:
created 84 jobs;
secured $4.5 million in private investment; and
generated $5.1 million in revenues.
These numbers demonstrate the microfund has helped generate almost fourteen times its own value in revenues alone, which contribute directly to the Newfoundland and Labrador economy.
Granville Biomedical joined Genesis in 2019. The company develops women’s health anatomical models that are designed to enhance healthcare training, advance patient education and innovate device demonstration. Granville was a recipient of the microfund.
“The Genesis Centre’s microfund has played a pivotal role in the growth of our company. It afforded us opportunities to expand research endeavours, hire key talent and go to market sooner. We’re incredibly grateful for the early infusion of capital, along with the mentorship and support that the Genesis team provides. Combined, it has proven to be an indispensable resource throughout our startup and early growth stages,” said Christine Goudie, co-founder and CEO of Granville Biomedical.
“The microfund has been a huge success,” Michelle Simms, president and CEO of Genesis, said. “Our goal was to provide financial support to our clients who already demonstrate massive potential, but these results have far exceeded our expectations. They’ve proven that with a small infusion of capital early on, the potential for growth expands rapidly.”
The technology sector has significant growth potential in Newfoundland and Labrador, and Genesis clients and graduates continue to hire new employees, secure investments and sell their products globally.
“The success these companies are enjoying is a clear demonstration of the valuable role Genesis plays in our province,” said Dr. Vianne Timmons, president of Memorial University. “For more than 20 years, Genesis has been at the forefront of providing the best entrepreneurial programming and mentorship for technology start-ups. I offer congratulations to these 18 companies and hope for their continued growth and development.”
“The Genesis microfund means a lot to small businesses in NL. It gets them the capital they need to start up. That means new, good jobs and a growing economy,” said the Honourable Seamus O’Regan, Minister of Natural Resources and Member of Parliament for St. John’s South – Mount Pearl, on behalf of the Honourable Mélanie Joly, Minister of Economic Development and Official Languages and Minister responsible for ACOA.
“We are pleased to invest in the Genesis microfund, which supports technology companies in their early stages and helps them accelerate innovative ideas, develop entrepreneurial skills and advance their businesses.” Said the Honourable Andrew Parsons, Minister of Industry, Energy and Technology. “Collectively, we are building the technology industry in Newfoundland and Labrador and growing the economy.”
About Genesis
Genesis, established in 1997, exists to help build amazing companies. Genesis clients and graduates have raised more than $615 million in private investment, generated more than $200 million in annual revenues and created more than 1,500 jobs. Genesis alumni are among some of the top companies in Canada, including Verafin, Rutter Technologies, Mysa, Virtual Marine and Genoa Design.
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For more information, please contact Annagray Campbell, Marketing and Communications Coordinator, Genesis, at 709-725-9138 or acampbell@genesiscentre.ca.