New Investment Alliance for IT Companies

InNOVAcorp and the Telecom Applications Research Alliance, or TARA, are partners in a $2-million investment alliance agreement to support emerging information technology companies.

This strategic alliance will provide capital to IT companies with high growth potential. It will be targeted at early-stage companies seeking $100,000 to $300,000 in venture financing. A committee of representatives from both organizations will manage the joint venture.

"This alliance is a significant step forward for TARA," said alliance president Brian Penney. "Not only does it give us a valued partnership with InNOVAcorp, it magnifies our capacity to provide venture capital seed money to deserving TARA members operating in the IT sector."

"This partnership will allow us to expand our investment fund and, in the long run, support more companies," said InNOVAcorp CEO Ross McCurdy. "We believe that between our two organizations we have the commercialization support required to help more of our IT companies make it to the global marketplace."

Under the agreement, InNOVAcorp and TARA will each provide $1 million in funding. In addition, TARA will be responsible for investigating and analysing opportunities, and recommending suitable ones for investment approval.

The investment alliance targets companies in Nova Scotia's growing IT sector. This may include companies developing hardware and/or software, health-related IT applications, and multimedia companies.

InNOVAcorp is a unique corporation focused on technology commercialization. It helps individual companies with one-on-one services and develops promising industry sectors through partnerships.

"This is great news for Nova Scotia's growing IT industry," said Manning MacDonald, Minister responsible for InNOVAcorp. "Accessing funds is one of the most difficult jobs facing our young technology companies. Often, it's the difference between success and failure.

"Now, thanks to TARA and InNOVAcorp, that job has been made a little easier. It's one more step in our efforts to help ready Nova Scotia IT companies for the global stage."

TARA is a membership-based corporation whose mission is to enable its members to become world leaders in the development and exploitation of communication network applications and services.