—just like every other early-stage company struggled in the first few years trying to find its feet and, as a result, we invested a second round of $1.5 million to provide them further runway to achieve success. The product offering was refined; new products were developed; new senior managers were hired; and the company has now blossomed into one of the most innovative and fastest-growing marketing solution companies in Canada. Employment increased from seven when we invested to well over sixty well-paying, high-value jobs in Nova Scotia. I think it's fair to say that without our equity capital in those early years this company would not have achieved the results it did, including recently attracting $17 million in new capital from a Toronto-based private equity firm. Our $2 million investment was recently turned into a $6 million exit for our fund shareholders.
With the phase-out of the federal tax credit, our ability to make follow-on investments like this one in existing portfolio companies may be seriously compromised, forcing these companies to look for other sources of capital under duress. These companies may have to accept punitive terms from new investors or not raise the necessary capital at all, thereby negatively affecting the asset value for our fund shareholders who are generally middle-class Canadians. How ironic would it be if one of our companies had to accept a new round of funding at a lower valuation from one of the new VCAP funds sponsored by the federal government? That's what I would call a negative transfer of wealth.
I have some other comments I'll make, hopefully, in the Q and A session.
Thank you.