Quebec creates seed fund for biotechnology

The Quebec government announced Friday the creation of a seed fund for the biotechnology sector.The fund, called AmorChem, consists of $41.25 million from Investissement QuÃbec, FIER Partners and the FTQ’s solidarity fund. There’s also an $8.25-million investment from the private sector, of which $6.8 million has come from pharmaceutical giant Merck.This is the last of three venture capital funds the Quebec government has created this year. Late last year, the government announced the creation of Real Ventures, a $50-million fund that will invest in high-tech startups, and last month, Cycle Capital was launched with $41.5 million dedicated to develop new companies in the clean tech sector. The government hopes the investments will boost Quebec’s sagging venture capital industry.Louis Lacasse, who will serve as president of AmorChem, said this new seed fund will follow an unconventional method he believes will reduce risk: Rather than funding individual companies that are each based on research projects, the fund will finance several pressing projects at the same time, and they will share research facilities. Projects that continue to show promise will either be grouped with similar ones and formed into a company, or the work will be licensed to investors from pharmaceutical companies.Lacasse explained this is a far less risky way of creating companies than in the past. However, there is still much risk investing in the industry.”Most projects fail, that’s just the nature of the business,” he said. “You have to be very good, and you have to be very lucky to have a project that becomes successful.”[email protected]/jasonmagder Copyright (c) The Montreal Gazette

  1. No comments yet.

  1. No trackbacks yet.