Minister Joly unveils Canada's new Venture and Growth Capital Plan that will strengthen venture capital investments in Canada with $1.75 billion in funding

TORONTO, Oct. 22, 2026 /CNW/ -- The global economy is undergoing profound change, with shifting trade dynamics and the rise of tariffs. That is why the Government of Canada is taking bold action to strengthen venture and growth capital investment in Canada. By investing in our innovation and technology ecosystem, we are unlocking more private capital so homegrown innovators and entrepreneurs can grow and scale globally leading products and services here at home and build a stronger, more resilient Canadian economy.

Today, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, announced the Venture and Growth Capital Catalyst Initiative (Growth VCCI), through which the federal government will provide $1 billion on a cash basis, starting in 2026–2027. Through this program, the government will catalyze private capital investment and will invest alongside the private sector through three streams:

• the $700 million Fund-of-Funds stream, focused on leveraging private venture capital (VC) by incentivizing private investors and attracting pension funds and other institutional investors
• the $200 million Life Sciences stream, focused on Canadian VC fund managers that target support for Canadian life sciences companies to innovate and grow
• the $100 million Emerging Manager stream, focused on supporting Canadian emerging fund managers, including those focused on strategic sectors and those located outside traditional VC hubs

Minister Joly also announced that the call for expressions of interest for the Fund-of-Funds stream of Growth VCCI is now open and accepting applications. The funding will leverage at least an additional $2.1 billion in investment from private capital investors, such as pension funds and other institutional investors.

Innovation, Science and Economic Development Canada is seeking applications from qualified fund-of-funds managers under the program, which can include private capital fund managers, pension funds and others. For private capital investors, the Fund-of-Funds stream offers attractive features such as risk sharing, enhanced exposure to performance, and an opportunity to invest at scale in funds and companies across Canada's world-class innovation and technology ecosystem. Selected fund managers will strengthen Canada's venture capital ecosystem, unlock private capital and support long-term economic growth.

The call for expressions of interest is open until noon (PCT) on January 21, 2027.

Minister Joly also unveiled Canada's Early and Growth Stage Investment Strategy, a new $750 million plan to address early- and growth-stage funding gaps for scaling firms at two pivotal stages of development. The strategy has two streams:

• the Pre-Seed and Seed Investment Stream ($75 million) to support domestic investment in companies at the earliest stages of development that helps them progress to Series A and beyond 
• the Later and Growth Stage Investment Stream ($675 million) to support domestic investment in companies at later stages that helps them scale and remain anchored in Canada

Investments in Canadian funds under the strategy will be administered by the Business Development Bank of Canada (BDC) on the government's behalf.

The Government of Canada, in collaboration with BDC, is seeking stakeholder views to inform the design of the strategy's Later and Growth Stage Investment Stream. The Discussion guide: Later and Growth Stage Investment Stream outlines proposed design considerations and questions. Written feedback in either official language may be submitted to [email protected] until 5 pm (PCT) on November 23, 2026.

As global competition for capital grows, the Government of Canada will back Canadian entrepreneurs and innovators at critical stages of their growth. Investments through this new plan and Growth VCCI are anticipated to attract and leverage at least $3.8 billion in private capital, for a combined investment of over $5.5 billion in Canada's venture capital and growth ecosystem. By unlocking more private capital and building deeper pools of domestic venture capital, the venture and growth capital plan will help more Canadian companies scale at home, create good jobs and build a stronger, more resilient economy.

Quotes

"Canada has the talent and ambition to build world-leading companies here at home. Our government's new venture capital strategy will be bold, forward-looking and transformative for Canada's venture capital industry by unlocking more private capital to back Canadian entrepreneurs and innovators. In a more complex and unpredictable global economy, Canada is investing in Canadian champions to compete globally, create jobs and strengthen Canada's position as a leader in venture capital."
– The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions

"We want Canadian innovators to build globally competitive companies, and we want those companies to grow here at home. That takes capital at every stage, from the first investment to the funding that helps a business scale. These investments will help more Canadian builders turn breakthrough ideas into businesses that create jobs, develop Canadian technology and compete with the best in the world."
– The Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Development Agency for Southern Ontario

"BDC's 2026 VC Landscape Report sends a clear message: Canada doesn't lack promising companies. We need to give entrepreneurs more options to access capital early, scale their businesses and keep them here. The 'crowding in' benefits of VCCI, which catalyzes private capital, has shown that the model works. Now, we're building on it to put more capital to work for Canadian entrepreneurs and investors and strengthen our economic sovereignty."
– Isabelle Hudon, President and Chief Executive Officer, BDC

"For the first time, Canada's venture capital strategy starts at pre-seed. For too long, our startups have rolled out of the country like acorns and grown into massive oaks elsewhere. When their first investors are Canadian, companies can more readily take root here. We commend the Government of Canada for building a strategy that backs Canadian founders from their first cheque. This is how we will build more homegrown global champions."
– Claudio Rojas, Chief Executive Officer, National Angel Capital Organization

"CVCA has been making the case for a stronger capital base that can follow Canadian companies as they grow. This commitment puts substantial federal capital behind that approach. It gives Canadian investors greater capacity to finance innovation and growth here, alongside the private and international capital already coming into the market. This is a meaningful step for Canada's private capital market and a strong outcome for the companies that depend on a deeper Canadian capital base. We look forward to working with government to get this capital into the market quickly so it can support companies as they build, grow and compete globally."
– Benjamin Bergen, Chief Executive Officer, CVCA

Quick facts

• Announced in Budget 2025, the $1 billion Growth VCCI has three streams:
  • the Fund-of-Funds stream ($700 million), focused on leveraging more private capital by incentivizing pension funds and other institutional investors
  • the Life Sciences stream ($200 million), focused on VC fund managers that support innovative Canadian life sciences companies
  • the Emerging Manager stream ($100 million), focused on supporting emerging fund managers, including those that support strategic sectors and those located outside traditional VC hubs
• Building on the success of historic federal capital programs, Growth VCCI will catalyze investment and innovation across Canada by:
  • strengthening the flow of capital to innovative, high-growth potential Canadian companies from pre-seed through to growth stage in order to build the next generation of homegrown entrepreneurs and Canadian anchor firms
  • attracting private investors, including pension funds and other institutional investors, to performance-driven funds that yield competitive investor returns and advance the sustainability of the Canadian VC and growth asset class
  • cultivating and retaining the next generation of Canadian fund managers by mobilizing capital to invest in fund managers across the VC and growth asset class, including those in strategic sectors such as life sciences, as well as in emerging managers
• Canada's Early and Growth Stage Investment Strategy will address persistent financing gaps facing Canada's most promising firms by investing $750 million to expand domestic capital that supports innovative Canadian companies in starting up, commercializing, and scaling to their full potential while remaining anchored in Canada.

Associated links

• Canada's Early and Growth Stage Investment Strategy
• Venture and Growth Capital Catalyst Initiative
• Accelerated Growth Service
• Business Benefits Finder
• Innovation Advisors

Related products

• Backgrounder: Government of Canada announces Canada's Venture and Growth Capital Plan

Stay connected

Find more services and information on the Innovation, Science and Economic Development Canada website.

Follow Innovation, Science and Economic Development Canada on social media.
X (Twitter): @ISED_CA | Facebook: Canadian Innovation | Instagram: @cdninnovation | LinkedIn: Innovation, Science and Economic Development Canada

SOURCE Innovation, Science and Economic Development Canada

Contacts: Mathis Denis, Director of Communications, Office of the Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, [email protected]; Media Relations, Innovation, Science and Economic Development Canada, [email protected]