October
18, 2000
Cash on table for promising
startups
Jill
Vardy
OTTAWA
- Ottawa's latest venture capital firm kicks off its business today with
$50-million in cash for likely-looking photonics and wireless technology
startups.
Venture
Coaches has launched its operations with one investee company lined up
and plans for at least four more by year-end.
"Finding
five companies to invest in by the end of the year is looking like a slam
dunk at this point in time," said Claude Haw, managing partner at Venture
Coaches. "We plan a portfolio of 20 in the next two or three years. We're
doing seed-level investment so we're thinking that $50-million is the
right amount to spread among 20 companies."
Venture
Coaches invests in early-stage, high-tech startups, primarily in the Ottawa
area. Its main focus is on the wireless and photonics sectors -- two of
the hottest of the technology hotspots growing around Ottawa.
Local
startup DPSWireless Inc. is Venture Coaches' first investee company. Mr.
Haw said he expects to announce soon another investment in a company that
is developing products in the fibre optical systems business. "And we're
doing due diligence on another that's in the optical components space
as well," he added.
Venture
Coaches clients can get help with developing business plans, setting up
offices, building management teams and recruiting staff. Venture Coaches
also has a network of business partners to provide legal, accounting,
banking, marketing communications, public relations, office space and
equipment, IT/Web hosting, employee benefits and payroll help.
Mr. Haw
said $11-million of the initial money was put into the fund by the four
founders -- Mr. Haw, Jaswinder Kaur, Larry Perron and John Saull. Each
partner has helped start technology companies in the Ottawa area.
Another
$4-million has been chipped in by local angel investors, with the rest
of the $50-million to come from two institutional investors, who can't
be named yet.