Terry Matthews planning new venture fund

Canadian high-tech veteran Sir Terence Matthews is launching a new venture capital fund that aims to capitalize on the deep pool of research and engineering talent cut adrift with the collapse of Nortel Networks Corp. Called the Wesley Clover Technology Accelerator Fund, it plans to raise between $100 million and $200 million to a establish a new generation of larger firms and start-ups. Matthews estimates that the talent cut loose with Nortel's demise won't stay in the Ottawa region forever, necessitating quick action to create new companies that can leverage their deep knowledge and expertise. Wesley Clover has developed a novel model for creating start-ups using university graduate students. Those who establish successful ventures that develop products required by larger firms in Wesley Clover's stable of companies will be given a 50% equity stake in the new entities.