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 improve 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 to fund, 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 by 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 strengthen Canada’s innovative start-ups.

 

The Venture Capital Catalyst Initiative

Through the Venture Capital Catalyst Initiative, the Canadian Government has created a robust 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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