BC Advantage Funds announces change in name & focus

BC Advantage Funds announced today that it will change the name and investment focus of its Advantage Life Sciences Fund II to focus on investments in emerging BC-based growth companies. The name of the fund will change to the Advantage Growth Fund. Earlier stage, life science investments will continue to be made in the Advantage Venture Fund. The new Advantage Growth Fund will invest in BC companies that have growing revenues, are profitable or approaching profitability and are likely to provide liquidity within a three to five year time frame.

Why the change? BC Advantage Funds’ CEO, Frank Holler names three reasons:

  1. A number of our financial partners have advised us that their clients would like the opportunity to diversify into a basket of VCC investments that have less volatility than traditional venture capital.
  2. Current market conditions are providing very reasonable valuations in growth companies and challenges with access to credit are causing many companies to turn to equity offerings to finance their growth.
  3. An analysis of our portfolio returns indicates that we have been very successful to date in deploying capital into growth companies.

Advantage currently has four companies in its portfolio that fit the definition of growth companies – Contech, Contigo Systems, IP Applications and Parasun Technologies. An aggregate of $6.6 million has been invested into these companies to date and the fair market value of those investments is currently $10.3 million. This represents an aggregate gain of $3.7 million and a total return of 56% on money invested. Not a bad return – makes sense to stick with what you know.