Frequently Asked Questions
What is InBC Investment Corp.?
InBC Investment Corp. is a strategic investment fund created by the Government of British Columbia with $500 million to invest as a source of local and long-term capital for small and medium businesses. With a triple bottom line approach that values people, planet and profit, InBC seeks to build a more sustainable, inclusive and prosperous future for British Columbians.
What are InBC’s impact objectives?
Our four impact objectives are to:
- Drive climate action
- Innovate for the future
- Advance reconciliation with Indigenous Peoples
- Elevate inclusive communities
How will InBC be making investments?
InBC will invest through:
- Venture funds who invest across various stages of growth, including:
- Seed stage companies – entrepreneurs needing capital to start a business
- Early stage companies – with a product in testing or pilot production
- Later stage companies – with a service/product looking to scale
- Co-investments in early and later stage companies
- Direct investments in early and later stage companies
What will InBC invest in and what will it not invest in?
InBC will invest equity in funds and companies. Each investment is assessed according to its:
- Strong connection to B.C.,
- Alignment with at least one of our impact objectives,
- Environmental, Social Governance (ESG) risks, and
- Potential for risk-adjusted financial returns.
We will not invest directly in seed stage companies, only through venture funds.
InBC will not be offering grants, loans and guarantees, short-term financing, investment into infrastructure or real estate projects.
InBC will also not invest in distressed businesses or illegal industries. The full list of exclusions is available in our Investment Policy Statement.
Over time, InBC will consider additional investment models.
How does InBC define “a strong connection to B.C.”?
We assess each investment’s connection to B.C. based on but not limited to the following:
- Its headquarter location
- Its number of decision-makers based in B.C.
- The portion of its portfolio and deal flow, or business activities, based in B.C.
When will InBC begin directly investing into businesses?
InBC made its first investments into venture capital funds in the fall of 2022. We will begin assessing opportunities to co-invest and directly invest into businesses in spring of 2023.
Why is InBC starting with venture funds?
By starting with venture funds, we are able to effectively reach a broad range of businesses at different stages of growth.
We can leverage the expertise of existing venture capital investors and build their capacity for investing, attract other private sector investors and multiply the overall capital resources in B.C. We are also building a pipeline of potential future direct investments.
How will you measure success and impact?
In addition to financial returns, we will measure impact across our portfolio with metrics that reflect progress towards the following:
- Diversity, equity and inclusion
- Impacts on Indigenous businesses and communities
- Geographic representation across B.C.
- Contribution to decarbonization
- Quality job creation, productivity and economic development
InBC leverages global standards and frameworks to measure impact including but not limited to the Impact Management Project, UN Principles for Responsible Investing, UN Sustainable Development Goals and Targets, UN Declaration on the Rights of Indigenous Peoples, Global Impact Investing Network (GIIN) , Reconciliation and Responsible Investment Initiative and International Finance Corporation’s (IFC) Operating Principles for Impact Management.
Is InBC seeking a return on investment? What will it do with returns?
Yes, we are seeking a positive financial return across our portfolio.
Returns on investments will be reinvested to create an evergreen fund for B.C., with a goal to generate enough investment income for InBC to become financially self-sustaining in the medium to long-term. Achieving this goal, InBC will be able to continue working for British Columbians well into the future.
Who does InBC report to?
InBC’s shareholder is the Government of British Columbia, represented by the Minister of Finance and the Minister of Jobs, Economic Recovery and Innovation. InBC is governed by a nine-member Board of Directors, two appointed from the public service, and the remaining seven made up of representatives from industry, finance, academia and other areas of leadership in the province. The Board Chair is Christine Bergeron, CEO of Vancity.
Will InBC’s investments be shared publicly?
InBC will be sharing investments once they are committed. Our founding legislation also requires that we publish annual reports detailing our investment performance and activities. In order to maintain confidentiality of the commercially sensitive data that is accessed during the investment evaluation process, InBC cannot share investment decisions in advance. For specific investment dollar amounts, we are respecting each fund or business’s communications plan for when they are ready to publicly announce.
How do I apply for investment?
If you are a venture fund who meets our investment criteria and impact objectives, please submit a pitch deck to email@example.com. InBC will progress to directly investing into companies in the spring of 2023; in the meantime, business owners can subscribe to our monthly newsletter to stay informed.
I submitted my pitch deck a while ago. When will I hear back?
InBC reviews applications against standard criteria, including the connection to B.C., alignment with InBC’s impact objectives, environmental, social and governance (ESG) risks, and the potential for financial return. For applications that meet our criteria, we will be in touch directly. Due to the volume of applications received, we may not be able to respond immediately to every application.
How do I appeal an investment decision?
If there has been a significant change to your business since your application that results in your business meeting InBC’s criteria, please follow up your previous application with this additional information. Due to the volume of applications received, we may not be able to respond immediately to every application.