BDC Makes $400 Million Available Through Venture Capital Catalyst Initiative to Secure More Late-Stage Venture CapitalWednesday, December 20, 2017
Vancouver, BC, December 20, 2017--(T-Net)--The Government of Canada announced today that it has launched a new Venture Capital Catalyst Initiative (VCCI).
VCCI will make $400 million available through the Business Development Bank of Canada (BDC) to increase late-stage venture capital funding for Canadian firms looking to grow, expand and compete globally.
Late-stage funding is financing required by an established firm to support product development or major capacity expansion. It enables companies to hire additional talent, market-test new products, and expand to new markets in Canada and abroad.
VCCI will complement other programs under the Government's Innovation and Skills Plan to help grow Canada's most innovative firms, support greater diversity and address gender balance in the VC community, according to the Government's news release.
?Today's announcement officially kicks off the call for proposals for VCCI support.
Successful candidates will be required to report on the gender balance of the fund managers and entrepreneurs they support (Really?).
In addition, the government will establish a private sector selection committee to evaluate incoming proposals and provide recommendations on selections to the Deputy Minister of Innovation, Science and Economic Development Canada.
“VCCI is one of the essential pillars of our Innovation and Skills Plan. The goal of VCCI is to support the growth and scaling-up of our best start-ups to turn them into global champions. This program will support Canadian firms in creating the jobs of today and tomorrow. I am also very proud of the fact that this new initiative is putting forward concrete steps to promote diversity and gender equality in the innovation ecosystem. An open society that values a diversity of ideas and perspectives is good for business.” said The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development.
“The VC industry plays an essential role in helping our most innovative entrepreneurs get started and scale their companies to compete with the best in the world. As the most active VC investor in the country, BDC is uniquely positioned to unite the best players in the ecosystem and create a new generation of international champions for a more prosperous Canada.” stated Michael Denham, President and CEO of BDC Capital, the investment arm of the Business.
By investing alongside the private sector, VCCI is expected to inject around $1.5 billion into Canada's innovation capital market.
VCCI will be administered by BDC.
2016 marked the seventh straight year of growth for venture capital in Canada and the most venture capital invested in start-up companies since 2001.
Canada is now ranked third for venture capital investment according to the OECD.
Karl W. Sasseville
Office of the Minister of Innovation, Science and Economic Development
Director of Communications
Office of the Minister of Small Business and Tourism
Innovation, Science and Economic Development Canada
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