In the News...

Bert Hill

Ottawa startups landed

$100 million in new financing in the final quarter of 2003, a beacon of hope at the end of a year that the technology industry would just as soon forget.

The Ottawa Centre for Research and Development said yesterday that 11 deals closed in quarter ending in December -- 42 per cent of all the deals and 35 per cent of the $287 million in financing for the whole year.

"While we were disappointed in the overall level of venture capital activity in our region," OCRI president Jeffrey Dale said, "we did see an increase in investment activity in the fourth quarter."

Six of the deals, worth $39 million, have not been announced yet. The announced deals include Adherex, $21 million; Belair, $19.5 million; Atsana, $13 million; Nimcat, $5.75 million; Pointshot, $1.3 million; and Hyla, $1 million.

Some might quarrel with the addition of publicly traded Adherex on a list of startup financings, but OCRI said it meets its criteria.
Despite the Q4 surge, 2003 was another tough year for technology companies, and one of the worst years for investment in new companies in five years.

More than $600 million invested during the technology bubble were flushed away along with 600 jobs with the death of major startups.

Mr. Dale said 20 of the 21 financings were first- or second-round deals, a sign of investor confidence. He said companies winning deals are providing innovative technology and sound business plans.

About half the investments involved U.S. investors, a sign that Ottawa is still on the radar screen of foreign investors.