The Government of Canada supports Canada's clean technology sector
VANCOUVER, June 5, 2019 /CNW/ - The Government of Canada is helping Canadian small and medium-sized businesses start up, scale up and access new markets. A strong venture capital ecosystem is critical to achieving this goal and to creating middle-class jobs.
Canada's venture capital industry is growing and has nearly doubled in size since 2010. To build on this success, the Government of Canada has invested $400 million, through the Business Development Bank of Canada, in the Venture Capital Catalyst Initiative (VCCI). The investment is leveraging private sector capital and will result in an injection of about $1.5 billion into Canada's venture capital ecosystem and the creation of thousands of middle-class jobs.
Clean technology is a high-growth industry in which Canada is emerging as a global leader. To ensure our continued success, the Honourable Mary Ng, Minister of Small Business and Export Promotion, today announced the successful recipients of further investment under VCCI that will support Canada's clean tech industry.
The $50-million investment will go to Renewal Funds, Cycle Capital Management and ArcTern Ventures to enable them to increase their support of Canada's high-potential clean technology companies. These three funds, headquartered across Canada, are dedicated to supporting companies committed to positive environmental impact through innovation.
Following the announcement, the Minister moderated a panel discussion on the importance of venture capital funding featuring Mike Woollatt (Hamilton Lane), Lauren Robinson (Highline BETA), Senia Rapisarda (HarbourVest) and Sophie Forest (Brightspark).
The clean technology investment through VCCI complements the Government of Canada's $2.3 billion investment in Canadian clean technology as well as Canada's plan to combat climate change and propel clean growth.
Each venture capital fund that receives investment under VCCI is required to have a gender strategy to promote women and diversity in venture capital.
"Canada is a world leader in clean technology. Our government is investing $50 million in critical venture capital to help Canada's best small and medium-sized businesses working in clean technology scale into innovative global champions. This investment complements our government's historic $2.3 billion investment in clean technology and will further support our rapidly growing venture capital ecosystem."
– The Honourable Mary Ng, Minister of Small Business and Export Promotion
"As the world transitions to a clean economy, Canada is making crucial investments to ensure our companies are leaders. It is estimated that the clean economy will be worth $26 trillion globally by 2030. By supporting investors in clean technology today, we're taking advantage of this once-in-a-generation economic opportunity and investing in the emission-reducing technologies that will ensure our children and grandchildren inherit a healthy environment and strong economy."
– The Honourable Catherine McKenna, Minister of Environment and Climate Change
- By investing alongside the private sector, VCCI is expected to inject around $1.5 billion into Canada's innovation capital market.
- In 2018, Canada's venture capital industry invested $3.7 billion over 610 deals, with a record 15 megadeals.
- The Government of Canada is investing $2.3 billion in clean technology.
- In 2017, Canada ranked fourth in the Global Cleantech Innovation Index.
- Venture Capital Catalyst Initiative
- Innovation Canada
- Innovation and Skills Plan
- Canadian Trade Commissioner Service
- Accelerated Growth Service
- Industrial Research Assistance Program (IRAP)
- Innovative Solutions Canada
- Women Entrepreneurship Strategy
- Canada-European Union Comprehensive Economic and Trade Agreement (CETA)
- Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
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SOURCE Innovation, Science and Economic Development Canada
For further information: Mallory Clyne, Director of Communications, Office of the Minister of Small Business and Export Promotion, 343-291-3553; Media Relations, Innovation, Science and Economic Development Canada, 343-291-1777, [email protected]