We've been promoting the idea of a culture of capital in this region for several years. If we started investing our own capital in our own companies, we might actually stimulate growth, employment, and prosperity. Atlantic Canadians own enough money but it's not being put to work here.

There are more than 100,000 companies in Atlantic Canada—only about 50 of them are publicly traded—but thousands of them export and therefore need growth capital. Initially, the lack of confidence in ourselves, the satisfaction with the status quo, and the naysayers created some negativity: “What a joke — a culture of capital? Here? Not possible!”

The biggest challenge we encountered was from those folks who manage the money: the investment dealers who get their marching orders from head offices in Toronto or Montreal. This region always has been viewed as a risky place  in which to invest by those in Central Canada, but we figured that if we started investing in ourselves—if we could convince ourselves that we're not a risk—then we can do the job locally. There might even be some additional benefits if outside capital finds its way into our companies.

Here at Progress magazine, we recruited Jonathan Norwood to write a column on investing locally. He's a capable analyst and an archconservative when it comes to investing. What readers began to realize was that we weren't proponents of philanthropic or foolish (read: pity) investing. We should consider investing in local companies only if they are worthy and ready.

Norwood recently left Beacon Securities in Halifax to start Rudderham Norwood Ellison Investment Counsel, his own wealth-management firm, with two partners. They wouldn't have been able to do this if the investing mindset hadn't started to shift. They have risked everything—as good entrepreneurs should—but it's a calculated risk.

They have witnessed a capital culture emerge in the Atlantic region and they hope to capitalize on it. Norwood's small firm isn't the only sign of good things to come. Halifax's Acadian Securities has been working for years to become a serious investment banker. It raises local and national money and seeks local investments. Beacon Securities has an analyst who tracks investment-grade, publicly traded Atlantic companies.

The New Brunswick Innovation Fund helps firms in that province that specialize in innovation move from proof-of-concept to proof-of-product and market feasibility, a most critical investment stage. The new Department of Business in Newfoundland and Labrador is mapping new capital instruments there.
Prince Edward Island Business Development is working with the P.E.I. BioAlliance to invest in Island companies emerging from UPEI's research labs. And in Nova Scotia, the Community Economic Development Investment Fund and the Credit Union/Co-op Equity Fund are putting millions of private capital into small and medium-sized businesses.

The Capital Pool Company instrument has been introduced in Nova Scotia and likely will soon start up in the other three Atlantic provinces. The CPC stimulates private investments in companies seeking to become public. The culture of capital is re-emerging in our region. Our pre-Confederation state of prosperity will return, and opportunity and stability are on the horizon.