As a strategic investment fund created by the Province of British Columbia (B.C.), InBC is here to invest in a more prosperous, sustainable and inclusive future for British Columbians. We invest in growing companies to generate financial returns as well as economic, social and environmental impacts for B.C., while growing the overall pool of capital for B.C. companies. Our goal is to attract, retain and grow companies, to drive innovation and keep quality jobs, talent and intellectual property in the province.
We invest alongside other investors in companies raising a total of at least $5 million CAD (typically a Series A or later), generating revenue and looking for an equity investment to support their growth. When assessing companies interested in InBC as an investment partner, we consider a few things such as the potential for financial returns, connection to B.C., alignment with our impact objectives and any environmental, social and governance (ESG) risks.
Why consider InBC as an investment partner? We offer:
- Local capital based in British Columbia to benefit British Columbians
- Longer term timelines for expected returns on investment
- Values alignment for companies generating both profit and impact
- Access to a support network through InBC’s partners
- An opportunity for additional investment through follow-on capital
InBC invests directly in companies from the early to later stages of growth. We use the Canadian Venture Capital & Private Equity Association’s (CVCA) definitions for early- and later-stage ventures:
To support seed-stage companies that have a concept or product in development and are not generating revenues, we invest in venture funds that invest in companies at this stage of growth. These funds specialize in specific sectors and have the expertise and capacity to better support companies in development. If you are a business that is too early for a direct investment from InBC, we encourage you to stay in touch and reconnect when you are ready to fundraise more capital to fuel your growth.
We invest alongside other investors to enable companies to crowd in multiple investors and increase their potential for reaching their target round sizes. InBC’s cheque sizes range between approximately $3 million to $5 million for early-stage companies, and $8 million to $10 million for later-stage companies. Note for equity investments, we can acquire no more than 25% ownership in any company.
Business model and potential for financial returns
We look at the sustainability and potential for success of your business model, including the market demand, your unique product differentiators and your competitors. We also consider the strength of your management team, any track records for growth and your financial forecast.
InBC invests in companies across various stages of growth and understands not all companies will be generating significant revenues yet. We consider your current and forecasted revenues based on your stage of growth and the expected trajectory for your sector or industry.
Strong connection to British Columbia
We assess your connection to B.C. based on variables such as the location of your headquarters or offices, number of decision-makers based in the province and percentage of business occurring in B.C. You may be based in B.C. or in some cases, you may be planning to expand your business (and stay) in B.C. The more of these variables you meet, the stronger we consider your connection to B.C.
Ultimately, we want to understand how our investment will benefit British Columbia, in areas such as quality jobs created, economic activity, or research and development spend.
Alignment to one (or more) of InBC’s impact objectives
InBC has a mandate to invest with a triple bottom line that values people, planet and profit. As such, each investment we make must align with at least one of our impact objectives to: drive climate action, advance reconciliation, innovate for the future or elevate inclusive communities.
While some companies might generate impact overlapping with more than one of these objectives (for example, many companies raising venture capital are innovative by nature), you only need to align with one of these impact objectives to be considered for an investment.
We also look at the intentionality of your impact — that is, how integrated it is with your business model, and your intent to measure impact. Is your business generating impact but you’re unsure where to begin in measuring it? That’s ok, our team can work with you to define and measure your impact, which will also make your company more attractive to other stakeholders such as future investors.
Environmental, social and governance (ESG) risks
We use ESG as a risk framework to assess any potential risks that can affect the sustainability of your business. While we do look at your current ESG including your diversity, equity and inclusion practices, we can work with you no matter where you are on your ESG journey. We want to know your plans for managing risk to ensure the long-term success of your company.
InBC is investing with a portfolio approach to build a strong, resilient portfolio that will generate financial returns and measurable impact for B.C. We are building a portfolio that is diversified across sectors and industries, company growth stages and geographic regions. While we recognize there are many companies meeting our criteria, we can only invest in select companies based on our current portfolio strategy.
The financial returns generated from our portfolio will be reinvested so that InBC can become an evergreen fund supporting more companies well in the future.
Companies seeking investment
Are you a company with strong connections to B.C. and looking for an investment to support your scale up? If you believe you are a fit for our investment criteria and impact objectives, express your interest in having InBC as an investment partner by filling out our short submission form.
InBC is investing $500 million over the next several years. There is no deadline to submit your interest but we recommend beginning the process at least six months in advance of needing capital.
Still have questions?
Do you still have questions about InBC’s investment criteria or assessment process? Join our next virtual office hour for an informal group chat with members of our investment team.