London tech firms that are just starting out will get the nurturing they need to grow through a new program, partially funded by Canadian taxpayers.
On Friday, London MPs Peter Fragiskatos and Kate Young announced $1.32-million in funding for TechAlliance of Southwestern Ontario's new business incubator program, BURST.
The program will see 30 start-up firms from the tech and medical manufacturing sectors receive mentoring and business guidance, seed funding, exposure to potential investors, and a dedicated work space in Western University's Discovery Park.
"We need to recognize that economic growth is ultimately driven by the private sector, by entrepreneurs. As a federal government, what we have said is let's help that along, lets help set the table for business. When we do that you see economic growth blossom," said Fragiskatos.
It is expected that 45 new full-time jobs in the life sciences industry will be created as the businesses helped by the program grow.
"It certainly adds one more element to what we are doing here in London to help attract and retain talent and particularly millennials who know technology is a fundamental importance, that it is an area that has a great deal of promise," said Fragiskatos. "When we make careers the focus and not just jobs, that sends a clear message to young people that London is here, London is building an ecomony where that kind of vision and focus can be put into place."
The London Medical Network is also putting up $900,000 for the program.
The program will be divided into three cohorts of ten small businesses that, over the course of a year, will be trained in market validation, company structure, intellectual property, and investor readiness.
"That type of investment is critical to get them ready to be in front of investors," said Marilyn Sinclair, president and CEO of TechAlliance. "Without that knowledge and support what happens is they get in front of investors, they're not ready and they blow their chance of getting investment. That is what we want to avoid."
TechAlliance hopes to have its first ten business cohort selected by April.
"I think it's going to be very easy," said Sinclair. "We know what is in the community but I think there may be some that are more in the start-up phase that we haven't seen yet. We are hopeful that we are also going to attract new ones into the community. We already have people who are interested in coming from Kitchener, Waterloo, and Hamilton."
Applications for the first cohort are being accepted through the BURST website.
