NBIF and GrowthWorks co-invest

By Codi Wilson – Telegraph Journal – link to original article

GrowthWorks Atlantic, an Atlantic Canadian venture capital fund, announced Tuesday that it will provide $1.75 million in funding to three tech companies in the Saint John region.

Premier David Alward attended the announcement at the Hilton hotel in Saint John, along with the CEOs of the three companies – Enovex Technology Ltd., MedRunner Health Solutions Inc. and Spinzo Corporation.

Enovex, a local clean-technology company that is developing advanced gas separation materials, will receive $1.1 million in funding.

MedRunner, a medical software company, will receive $250,000 and Spinzo, a company preparing to launch a new deal-of-the-day website in Saint John and Toronto, will receive $400,000.

“With today’s announcement, we will now have eight active New Brunswick-based companies in our investment portfolio,” said Tom Hayes, president and CEO of GrowthWorks Atlantic.

“In all of the jurisdictions we operate across Canada, I have to say New Brunswick is one of the strongest in terms of the collaborative approach and partnership between business and government.”

The premier said that entrepreneurship is one thing that keeps him optimistic about the future of the province.

“If you ask me about things that keep me awake at night, number one is the hole that we have ourselves in as a province fiscally. Number two is the demographic challenge … But if you ask me about what gives me confidence in the future of the province, it’s these young adults and business leaders … who have a commitment, who have a desire to build their businesses to create and ultimately prosper here in Atlantic Canada. I think that is a very strong message for each of us,” Alward said.

Gerry Pond, a local leader in supporting and investing in entrepreneurship in the province, and Calvin Milbury, president and CEO of the New Brunswick Innovation Foundation, also attended the announcement. Pond, Bob Justason and the NBIF all provided additional funding to Spinzo and have previously invested in the other two companies as well.

Enovex CEO Scott Walton said big things are on the horizon for the company in 2012.

“We have a very succinct plan for this year. We are going to grow our team, add some scientists – take them out of industry and bring them on board. We are going to partner with some companies here is New Brunswick, trial the technology and we should be ready to advance to revenue generation in the following year. So it’s a big year for us, because we are scaling up our technology,” Walton said.

The $400,000 that Spinzo CEO Emmanuel Elmajian will receive will go toward the launch of the site, which is expected to take place in March, he said.

“(The funding) is getting us over that first hump and portraying to investors that this product can truly change the world of e-commerce, and we feel we can do that,” Elmajian said.

Todd Murphy, CEO of MedRunner, said the company has recently expanded to Newfoundland and the funding will help it to further develop the company, which plans to double its staff from eight to 16 and expand to Nova Scotia and Ontario in 2012 and 2013.

“I think it is companies like ours that are going to change the perception … and foster other entrepreneurs, and really start to make a self-sufficient province out of individuals starting companies born and bred here. I think with the success of Radian6 and Q1 Labs, we see what is possible with that,” he said.

“It’s great that they are a big success, but I think what is more important is seeing local companies from New Brunswick start their companies here, grow it, fund it from Atlantic Canada and change the world. I think that is the lesson learned here today and that is what our three companies plan to do.”

Growing tech firms

Enovex Technology Ltd.

CEO:

Scott Walton

Enovex is clean technology company that is developing advanced gas separation materials.

Funding: $1.1 million

MedRunner Health Solutions Inc.

CEO:

Todd Murphy

MedRunner is a company that develops and deploys electronic prescription solutions to doctors and pharmacies.

Funding: $250,000

Spinzo Corporation

CEO:

Emmanuel Elmajian

Spinzo is a buying platform that uses dynamic pricing to connect merchants and consumers.

Funding: $400,000