A new business partnership between local capital firm Launchworks Inc. and Hewlett-Packard will help the Calgary company’s partners build and commercialize their products in the global market, predicts the CEO.
As part of the agreement, HP has made an equity investment in Launchworks, says Byron Osing. “We’re not expected to buy hardware from them to repay the money. This is a pure equity investment, no strings attached, to form a true partnership between the companies,” said Osing, declining to divulge the amount of the investment.
“They’re working with a lot of our young companies to help architect their technologies appropriately, to make sure they’re scalable, world-class technologies.”
Launchworks provides Canadian entrepreneurs with launch capital and access to a network of financial, intellectual and resource capital necessary to succeed post-launch.
“Our relationship with Launchworks affords us immediate entry into a dynamic and rapidly growing nationwide network of Canadian entrepreneurs,” said HP Canada president and CEO Paul Tsaparis in a statement. “By bringing to the table our experience, startup programs and solutions, we believe we can significantly contribute to the overall growth of Launchworks and its investment companies to our mutual benefit.”
“There’s a world of difference between commercial-class technology, and a piece of software that works,” said Osing. “This is about developing world-class technologies, not just pumping out code.”
Funding concept technologies that may never provide cash flow is a losing game, he added, because there’s not enough capital available to support such speculative plays.
Most of the Launchworks companies, he says, “are approaching the point where they’re going to be cash-flow positive very soon, if they aren’t already.”
