Investors provide millions to grow Avrio Ventures

Posted on 03. May, 2008 in Corporate News

Kirchner Investment Management Corporation is a general partner of Avrio Ventures.

Calgary, Alberta, 3 May 2008 – Avrio Ventures, which was established by the venture capital division of Farm Credit Canada, is expanding with help from two new major investors. Rick Hoffman, vice-president of finance and venture capital with Farm Credit Canada (FCC), said the new investment in Avrio Ventures should help address “a critical need for venture capital in the agriculture, life sciences area.” Avrio Ventures was originally established in 2006 with an investment by FCC of $50 million.

But it was announced Friday that new investments have been received from Export Development Canada, Business Development Bank of Canada and other sources which brings the total capital commitments to Avrio Ventures up to $75 million. Hoffman said there is sometimes a reluctance by banks to invest money in riskier, cutting-edge technology industries.

“There is a gap in that market,” he said.

And the role of Avrio Ventures is to help fill that gap in emerging economic sectors and to facilitate growth in those areas, Hoffman said. Avrio Ventures was founded to foster developments in industrial bio-products, food technology and nutraceutical ingredients.

“The Avrio Fund will foster the investment in an important part of the Canadian agriculture industry,” Hoffman said.

Jennifer Brooy, vice-president of equity with Export Development Canada, said EDC’s involvement with Avrio Ventures “will help Canadian agricultural technology firms move higher up in the global value chain and help increase trade in a rapidly developing sector.”

“There are strong global demand pressures driving innovation in agricultural technology and Canada is the forefront of this trend with a strong research base and a host of small companies at the leading edge in this field,” Brooy said. Tim April, managing director of BDC Venture Capital, said BDC was pleased to invest money with Avrio Ventures because it has “targeted new and unique sectors and that will play a key role in helping many Canadian companies reach higher levels of success.”

FCC Ventures was established in 2002 to help address the need for venture capital in the agriculture industry.

FCC is Canada’s largest provider of business and financial services to farms and agri-business.