Through the course of its regular business, MAVAN Capital Partners aggressively searches for strategic investments in technology companies that reside in British Columbia. These companies have a commonality in that they are all early stage entities which require capital for growth as well a business advice on how to move forward toward profitability. In response this growing need, MAVAN created the MAVAN Backyard Venture Fund (VCC). The fund’s focus will be to make investments in technology companies that qualify as eligible investments under the Small Business Capital Venture Act (SBVC Act) in British Columbia.
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 $200,000 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 $60,000
- 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)
VCC Investment Details
VCC #1
- Term – 5 Year Closed Ended Fund
- Structure – Venture Capital Corporation (VCC)
- Offering Size – $2,000,000.00
- Minimum Investment – $10,000.00
- Priority Return – 7% Annualized
- Profit Participation – 75% / 25% (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 10% Commission will be paid
VCC #2
- Term – 5 Year Closed Ended Fund
- Structure – Venture Capital Corporation (VCC)
- Offering Size – $5,000,000.00
- 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 10% Commission will be paid
VCC #3
- Term – 5 Year Closed Ended Fund
- Structure – Venture Capital Corporation (VCC)
- Offering Size – $5,000,000.00
- 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 10% Commission will be paid
Discuss investments
with MAVAN
We are a diverse team of successful business, finance, and legal professionals with extensive private and public company management experience across many industries. We have built strong relationships which provides access to opportunities not commonly available to most investors.