The modernization of the SODEC Act, passed on December 12, was warmly welcomed by the members of XN Québec. It is worth noting that this measure officially recognized the field of digital creativity as one of the sectors covered by the state-owned corporation’s mission.
The passage of Bill 108 also provided SODEC’s Banque d’affaires with new financial tools and an additional $200 million.
To learn more about the new opportunities these changes offer digital creators, XN Québec members were invited to participate in a webinar with the Banque d’affaires team. In attendance were: Sophie Labesse (Executive Director, Corporate Financial Services at SODEC) and the professionals on her team: Simon Cypihot-Cardinal, Marie-Ève Geoffrion, and Emma Pépin.
A Renewed Mandate
The first significant change worth noting is that, by recognizing the digital creativity sector, SODEC is also opening the doors of its Banque d’affaires to studios operating within this ecosystem. In addition, a representative from the digital creativity sector will soon be added to SODEC’s board of directors.
More specifically, theBanque d’affaires’s mandate is to:
“To contribute to the economic development of Quebec’s cultural enterprises and to foster their growth and sustainability, with the aim of creating a dynamic, innovative, and high-performing cultural industry, and to meet all the financial needs of cultural enterprises, in collaboration with other partners in the financial sector.”
It is therefore important to note that the Banque d’affaires operate in a complementary manner to traditional banks.
New Tools
In addition to existing financing tools—such as revolving credit lines, term loans, loan guarantees, and interim financing for tax credits—there are now various forms of private placements. More specifically, these include unsecured loans, equity investments, and advance financing (GAP financing).
The key word here is “investment.” This isn’t about grants. In other words, the investment banking team expects a return on its investment when it provides funding to cultural organizations.
That is why our potential clients are rapidly growing companies with a proven business model and a well-defined market, who are open to strengthening their structure and governance and aim to become leaders in their industry.
Learn more
XN Québec members who would like to watch the entire webinar are invited to view the recording of the presentation, which has been shared on the association’s Discord community. If you are an XN member and have not yet joined this discussion platform, please feel free to contact us.
Photo Credit: Merryl B. Lavoie