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Government Names Five 'Fund-of-Fund' VC Firms to Receive $350 Million in Funding (to Leverage up to $1.5 Billion)
Wednesday, June 27, 2018
Vancouver, BC, June 27, 2018--(T-Net)--The Government of Canada announced today the first round of investments under its Venture Capital Catalyst Initiative (VCCI).
As announced in Budget 2017, the Government of Canada, through the Business Development Bank of Canada (BDC), will be making available $400 million to increase the availability of late-stage venture capital in Canada through the Venture Capital Catalyst Initiative (VCCI).
With funds leveraged from the private sector, this investment could inject approximately $1.5 billion into Canada's innovation capital market and VC ecosystem. This funding will complement support provided by other programs under the Innovation and Skills Plan to help grow Canada's innovative high-potential start-ups.
Under this first stream of VCCI, the Government of Canada is investing $350 million in five new large funds-of-funds that will invest in venture capital funds on a national scale, with a focus on Canadian start-ups, as well as directly into young firms in the scale-up stage of rapid growth.
The five funds-of-funds managers to receive investments under VCCI are:
These managers will now start to raise additional capital from the private sector of no less than 2.5 times the amount of capital made available to them from the Government of Canada and provincial governments.
Each recipient demonstrated how it will enhance diversity and increase the participation of women across the venture capital ecosystem, and recipients will report on the outcome of their strategies.
This initiative will increase business investment in Canada, improve the venture capital ecosystem across the country and boost Canada's economic competitiveness, according to the government.
"Across Canada, you can find small and medium-sized firms with innovative new products and services. These companies often need an injection of capital to scale up and make their mark on global markets. This announcement under the Venture Capital Catalyst Initiative, part of the Innovation and Skills Plan, furthers the Government of Canada'swork to create an investment environment where made-in-Canada breakthroughs can challenge the status quo and change the world. I look forward to all the future benefits and new jobs resulting from this announcement." said Navdeep Bains, Minister of Innovation, Science and Economic Development.
"As Minister of Small Business and Tourism, I've heard from entrepreneurs across Canada about the importance of finding the investment needed to fuel growth and take advantage of new opportunities. Today's announcement of the first stream of recipients under the Venture Capital Catalyst Initiative makes it more likely that emerging businesses with fresh new ideas will find the capital and investment partners they need to scale up and create good middle-class jobs. This important initiative will help increase gender equality in the venture capital industry and support not only women-led investment funds but also women-led companies as they grow and compete." stated Bardish Chagger, Minister of Small Business and Tourism.
"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. BDC is uniquely positioned to support this initiative. As the most active VC investor in the country, BDC Capital, our investment arm, can unite the best players in the ecosystem and create a new generation of international champions for a more prosperous Canada." continued Michael Denham, President and Chief Executive Officer, Business Development Bank of Canada.
Quick facts
For further information:
Karl W. Sasseville, Press Secretary, Office of the Minister of Innovation, Science and Economic Development, 343-291-2500; Sandra Aubé, Director of Communications, Office of the Minister of Small Business and Tourism, 343-291-2700; Media Relations, Innovation, Science and Economic Development Canada, 343-291-1777, ic.mediarelations-mediasrelations.ic@canada.ca
Photo Credit: Wikipedia
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