Sixteen Toronto-based startups received some game-changing news last week. The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) announced these young companies will collectively receive more than $9.4 million in funding.
“This investment will boost business innovation, skills and product development in the Toronto area, creating new full-time jobs and greater economic diversity within the region,” says Minister of State Gary Goodyear.
The money will be invested through FedDev Ontario’s Investing in Business Innovation initiative to help these companies develop their products and bring them to market. The new businesses—active in the software and digital media, life sciences and food processing sectors—were able to leverage the FedDev funding to attract $33.9 million in additional angel and VC financing.
Xagenic received the highest amount. The company now has $990,000 from FedDev Ontario to accelerate the development of a clinical diagnostic testing system and has also leveraged a total of $10 million from the CTI Life Sciences Fund, the Ontario Emerging Technologies Fund and Qiagen N.V.
Viafoura received the next-highest funding amount of $980,000 to develop a software platform for digital publishers. The company also leveraged $2 million from the Golden Triangle Angel Network, the Georgian Angel Network and the York Angel Network.
The third-highest amount of $950,000 went to Alpha Cancer Technologies to help develop clinical trials of a proprietary chemotherapy platform, with an additional $2.1 million in funding from XDL Angel group.
FedDev Ontario also announced last week that it will provide $5.95 million in funding to three projects under its Prosperity Initiative, $1.79 million to two projects under its Youth STEM initiative and $1.25 million to three commercialization fellowship programs under its Scientists and Engineers in Business initiative.
Taken together, FedDev predicts these projects will create more than 800 full-time jobs in the Toronto area.