MONTRÉAL, Sept. 16, 2024 /CNW/ - Canada is home to some of the most innovative entrepreneurs in the world, and the federal government has their backs. Today at the Kauffman Fellows Summit in Montréal, the Honourable Rechie Valdez, Minister of Small Business, emphasized the positive impact that the Government of Canada's venture capital (VC) investments have made on the Canadian VC ecosystem.
The federal government's Venture Capital Catalyst Initiative (VCCI) has successfully enabled VC fund managers to leverage federal investments to raise private sector and other public investments and invest in innovative Canadian businesses. Since 2016, the federal government has invested over $820 million in the Canadian VC ecosystem to support Canadian founders and innovation, creating a monumental impact of $3.4 billion on the Canadian VC ecosystem. Consequentially, the VCCI has supported the creation of more than 20,000 jobs across Canada.
Building on this momentum, the government's latest budget is devoting $200 million to renewing the VCCI, with a goal of supporting VC for entrepreneurs who are part of equity-deserving groups, and to investing in underserved communities and outside key metropolitan areas.
Through the VCCI, the federal government is helping ensure that more firms owned by women or members of Black, 2SLGBTQI+ and Indigenous communities in the small and medium-sized enterprise space have access to the capital they need to start up and scale up, strengthening Canada's economy. This is key to growing and supporting startups with high growth potential.
The VCCI is more than a financial investment, it's about reimaging Canada's VC landscape in a way that empowers people from all backgrounds to pursue their entrepreneurial goals through increased investment and access to capital—a key priority of the federal government.
"Our government believes that anyone who has a dream of launching a startup and bringing their innovative ideas to life should be able to do so, no matter who they are or where they come from. We're helping make this a reality by making more capital available to VC firms, including those led by women and members of other equity-deserving groups. The VCCI is already jump-starting the development of a new generation of bright and diverse Canadian entrepreneurs and innovators, and it is creating thousands of new Canadian jobs on top of this. Supporting diverse and under-represented entrepreneurs in the VC sector is not only the right thing to do; it is the smart thing to do and is essential to boosting Canada's economy to its full potential."
– The Honourable Rechie Valdez, Minister of Small Business
- Together with investments from the private sector, the Venture Capital Catalyst Initiative (VCCI) is expected to inject around $3.4 billion into Canada's innovation capital market.
- The Canadian venture capital (VC) ecosystem has grown significantly over the past decade, with annual investments increasing from $1.9 billion in 2013 to $6.9 billion in 2023, which was invested in 660 deals.
- Canada ranks in the top five in terms of VC investment as a percentage of GDP, according to the Organisation for Economic Co-operation and Development.
- In addition to the VCCI, the Government of Canada also delivers the Inclusive Women Venture Capital Initiative under the Women Entrepreneurship Strategy. This $15 million initiative aims to strengthen the VC environment for Canadian women entrepreneurs and make it more inclusive. It supports projects that help increase access to VC funding for women entrepreneurs, contribute to the increasing representation of women in the VC industry, and ensure that the VC industry is sensitive to gender and potential unconscious bias.
- The Business Development Bank of Canada (BDC) is Canada's most active single VC investor, managing over $4.2 billion in VC investments. The BDC is also increasing VC investments to help increase diversity in the area, having recently launched its $500 million Thrive Venture Fund and Lab for Women, the largest investment platform of its kind in the world.
- In June 2024, the BDC created two new $100 million platforms to support Indigenous- and Black-led businesses. These platforms are under development and will complement the Thrive platform for women.
- VC funds managers selected under the VCCI are required to collect gender and diversity metrics, as well as implement policies and practices that promote EDI internally, in building their portfolios, and in the broader VC ecosystem.
- Venture Capital Catalyst Initiative
- Minister Valdez announces new investments to help diverse entrepreneurs grow their businesses
- Minister Valdez announces new investments to spur innovation and help diverse entrepreneurs scale their business
- Securing Canada's AI advantage
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SOURCE Innovation, Science and Economic Development Canada
Contacts: Callie Franson, Communications Advisor, Office of the Minister of Small Business, [email protected]; Media Relations, Innovation, Science and Economic Development Canada, [email protected]
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