First Nations Equity officially launched its company today after one year of testing the market. According to CEO, Brian Davey, “The estimated demand for aboriginal corporate financing for 2001 is $2.5 billion, which excludes public infrastructure and pipeline projects which is estimated to be in the billions of dollars.”

Investment banking is not new to the non-aboriginal business community, but in the Aboriginal realm, the world of corporate finance has not been instrumental in financings of aboriginal businesses and large public projects.

Very few aboriginal companies ever access venture funds, pension funds, go public or have corporate investors to grow their companies. The use of bonds to raise capital by First Nations and aboriginal corporations are non-existent.

According to FNE’s research most of the major financing comes from chartered banks. “We want to provide broader access to capital that has greater tolerance for risk and more receptiveness to the entrepreneurial spirit,” said Davey.

On the issue related to the lack of corporate financing, Davey said, “We can’t sit on the sidelines and wait to appear on someone’s radar screen on Bay Street — we have to get out there and create the circumstances we want.”

The firm’s immediate plan is to create a $100 million venture fund for aboriginal companies and community-based corporations backed by corporate, institutional and aboriginal investors. “We need to build aboriginal corporations that will benefit from the development that is being proposed on Aboriginal land — only then will the aboriginal community witness the true sharing of wealth,” said Davey.