Summit FullSail conference will provide timely advice on coping with tight credit markets

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DAVID SHIPLEY
Telegraph-Journal

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Efforts to improve access to capital markets in New Brunswick are more important now than ever given the ongoing global financial turbulence, says a provincial expert.

"Because of the turmoil and potential slowdown there is "¦ a whole new difficulty in raising money," says Michael Arbow, capital markets specialist with the New Brunswick Securities Commission.

"Two weeks ago I was at a venture capital conference in Ottawa and basically the VCs have closed their wallets and the IPO market (in Canada) has almost closed up completely." But, he added, angel investors continue to be interested in deals.

The tough market conditions and the continued need for New Brunswick firms to get better access to capital means the upcoming third annual FullSail summit will be more important than ever for the province, he said.

The summit, scheduled for May in Fredericton, is particularly timely, Arbow said.

The conference will provide delegates with advice on how best to navigate through these tumultuous times.

The goal for the third iteration of the summit will be to seek out and find global examples of how different areas have built up their capital markets, he said.

The summit could help provide young firms with information to help them prepare for when the financial markets recover, said Arbow.

Arbow's comments come as the commission marks the six-month point since the last FullSail conference in the spring.

A number of important milestones have been reached on recommendations from the second summit, said Arbow.

Perhaps the most important to date is the impending official launch of a website designed to bring New Brunswick entrepreneurs together with each other and with experts such as lawyers and accountants who can help them grow their firms.

Called MyNexia, the site can be found at www.mynexia.com. It will launch with all of its features next week during the ThinkNB trade show.

"What's cool about it is it uses Web 2.0, it'll have places for blogs, posting videos and posting recommendations," said Arbow. "It's sort of like LinkedIn meets Facebook, it's sort of professional but informal at the same time." MyNexia is a one-of-a-kind site, he said.

"We've looked all over and we haven't seen anything like it," he said. "This is really cutting-edge stuff." Arbow said several other recommendations from the FullSail summit in the spring have made significant progress, including efforts to build an Atlantic Canadian venture capital fund that could tap into some of the billions of dollars in pension funds in the region.

Arbow said progress on that initiative, while slow, continues in spite of the global financial turmoil.

The FullSail summits have helped raise awareness about capital markets among New Brunswick businesspeople, he said.

He noted that two years ago he spoke to an entrepreneurship conference and the entrepreneurs there "really hadn't heard about angel investors" and many weren't willing to open up their firms to outside investment and influence.

"Now, not only do they know about angel investment, they want it."