MAVAN Capital Partners actively seeks out strategic investment opportunities in British Columbia’s vibrant technology sector, with a particular focus on early-stage companies that require both capital and expert guidance to accelerate their growth and achieve profitability. Recognizing the growing demand for support in this space, MAVAN established the MAVAN Backyard Venture Fund (VCC).
The MAVAN Backyard Venture Fund is dedicated to investing in technology companies that qualify as eligible investments under British Columbia’s Small Business Venture Capital Act (SBVC Act). This fund is specifically designed to provide the necessary financial resources and business expertise to promising tech startups in the region, helping them navigate the challenges of early-stage development and scale toward sustainable success.
Through this initiative, MAVAN aims to foster innovation and growth within British Columbia’s tech ecosystem, contributing to the province’s economic development while delivering strong returns for our investors.
HOW DOES THE VENTURE CAPITAL CORPORATION (VCC) PROGRAM WORK?
Venture Capital Programs encourage investors to make equity capital investments in British Columbia small businesses that will enhance and diversify the provincial economy. A Venture Capital Corporation (VCC) is formed for the sole purpose of investing in eligible small businesses. VCCs must be authorized to raise investment capital in the program. VCCs are usually managed by venture capitalists or angel investors who provide small businesses with the benefit of their expertise, experience, and business knowledge.
- Individual investors may invest up to $400,000 per year (unlimited for corporations) and the shares must be held for a minimum of five years
- Individual investors who reside in British Columbia are entitled to receive a 30% refundable tax credit, up to an annual maximum tax credit of $1200,000
- VCCs claim tax credits on behalf of their B.C. investors;
- Individual investors who invest in the first 60 days of a calendar year can elect to apply their tax credits to the previous calendar year’s tax return.
- Investors may carry forward unused tax credits for subsequent years
- B.C.-based businesses must apply to be registered as a VCC
WHAT IS AN ELIGIBLE INVESTMENT FOR THE MAVAN CAPITAL BACKYARD VENTURE FUND VCC?
- Business is incorporated and registered to operate in B.C.
- Business has a permanent place of business in B.C.
- Business pays at least 75% of its annual wages & salaries to B.C. employees
- Business that is “substantially engaged” in one or more of the qualifying activities (Manufacturing and Processing of Goods; Research and Development of Proprietary Technology; Destination Tourism; Development of Interactive Digital Media Products; Development of Clean Energy)
Investment Details
VCC #2
- Term – 5 Years
- Structure – Venture Capital Corporation (VCC)
- Offering Size – $10,000,000.00
- Minimum Investment – $10,000.00
- Priority Return – 5% Annualized
- Profit Participation – 70% / 30% (Split in favour of the investor over 5% Priority)
- Registered Plans – RRSP, RESP, RRIF, LIRA and TFSA eligible
- Management Fee – 2% Annual
- Commission – Up to 8% Commission will be paid.
Investments
Opportunities
If you are an everyday Canadian and are interested in expanding your portfolio, getting exposure to some of Canada’s most exciting Technology companies, while doing so through your registered accounts (RRSP, TFSA), please reach out as we would be happy to introduce you to the opportunities that exist at MAVAN Capital Partners.