While efforts are underway to promote and build NH's high-tech ecosystem, there is a key ingredient missing-capital. New Hampshire has few venture capital (VC) firms, particularly those willing to invest in genuine startups, and there is little public funding available. And though Massachusetts is a hub for VC investment, those investors are reluctant to invest here.
According to the 2012 National Venture Capital Association Yearbook, only 1 percent of 2011 investment in NH companies came from in-state firms.
But the state and a private venture capital firm are joining forces to change that. Borealis Ventures, a VC firm with offices in Hanover and Portsmouth, is partnering with the NH Business Finance Authority (BFA), to launch The Borealis Granite Fund. It is the first-ever venture capital fund solely committed to building NH's next generation of high-growth technology companies.
The BFA is contributing $4.5 million to the fund and Borealis Ventures will leverage another $25.5 million in private investment. What makes this fund unique in the United States is that the state, through the BFA, will receive distributions from the fund only after private investors are paid, a move meant to encourage private investment.
The fund will invest in NH tech companies with the potential for substantial growth and value, and in new companies needing seed money to launch.
We're excited to be part of creating the next high growth companies, says Jesse Devitte, co-founder of Borealis. He says companies will in turn create high-paying jobs in the state, attracting other investors to NH and strengthening the state's high-tech ecosystem.
Devitte says it is important to grow local companies and prevent them from moving to Massachusetts. We want to prevent that gravitational (pull) south so we can build companies that will be institutions in the state, he says. For more information, contact Borealis Ventures at 603-643-1500 or info@borealisventures.com or the BFA at 603-415-0190 or BrendaP@nhbfa.com.
Current Issue - May 2024