The Venture Capital Catalyst Initiative

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To be able to grow and develop a business, entrepreneurs depend on funds. Having access to
funding is crucial. It helps business owners grow innovative companies and further develop their ideas,
promote new products, increase revenue and create new job opportunities across the country which is
significant for Canada’s economy. The Government of Canada has put in place a new initiative called
Venture Capital which is a specific type of private equity financing that takes calculated risks on great
ideas. In doing so, they are giving young high growth-potential companies the chance to develop their
ideas into profitable products. Aside from offering funding, Venture Capital investors bring solid
experience, technical knowledge, the right networks and mentorship to the businesses in which they
invest. Having a strong team of investors is a crucial part in the success of Canada's potential future
technology leaders. Therefore, it comes to no surprise that the government of Canada has launched the
Venture Capital initiative to get the right investors to invest in innovative companies.

The Government of Canada made an important announcement in Budget 2017. In partnership
with the Business Development Bank of Canada (BDC), Canada is making $400 million available to
increase the availability of late stage venture capital in Canada. This significant investment has the
potential to increase approximately $1.5 billion into Canada's innovation capital market. The funding
also complements other programs that are under the Innovation and Skills Plan to help increase
Canada's innovative start-ups.

The Venture Capital Catalyst Initiative

Through the Venture Capital Catalyst Initiative, the Canadian Government has created a solid portfolio
of large funds and alternative models that reinforces and expands the Canadian Venture Capital
ecosystem. The Venture Capital Catalyst Initiative also includes a complete focus on enhancing diversity
and addressing gender balance among Venture Capital fund managers, investors, and portfolio
companies. The Initiative used a competitive process to allocate capital to fund managers in two
streams:

  • Stream 1: A $350 million investment in large private sector-led funds-of-funds that is designed
    to capitalize on returns through diversified investments, support skilled Venture Capital fund
    managers and attract substantial private sector capital.
  •  Stream 2: A $50 million investment in Venture Capital fund managers that can offer a financial
    return to investors, but in areas not otherwise be addressed by Stream 1. Applicants under this
    stream had strategies focused on supporting underrepresented groups such as women or
    diverse fund management teams and entrepreneurs, or emerging regions and sectors.

To find out more about the Venture Capital Catalyst Initiative, see below for their contact information:
Email: capital@canada.ca
Telephone: 1-800-328-6189

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