OTTAWA, ON, June 8, 2021 /CNW/ - A strong and vibrant venture capital (VC) ecosystem is critical for innovation and scaling up in Canada, which will be crucial to our long-term growth and competitiveness. This ecosystem provides businesses with financial support and advisory services they need to scale up and grow their business, bringing made-in-Canada products and innovations to the world while anchoring their success in Canada.
Today, the Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, highlighted the Government of Canada's commitment to increase its support to the VC market in Canada. During her remarks at the Canadian Venture Capital and Private Equity Association's annual Invest Canada conference, she noted that the government has committed to renewing the Venture Capital Catalyst Initiative (VCCI) through a $450-million investment announced in Budget 2021.
Canada's VC ecosystem has grown in recent years; 2019 set a new record in total investment, with $6.2 billion invested in Canadian businesses. A renewed VCCI builds on this momentum by investing $350 million in large national funds to support Canadian VC fund managers, $50 million in the life sciences sector and $50 million in inclusive growth. Through this investment, there is dedicated support for under-represented groups in the VC ecosystem such as women, Indigenous and racialized communities.
Increasing support for the VC industry is a win-win for Canada. It helps Canadian businesses get the financial support they need to scale up, access new markets and export their products and services to international customers, while also creating well-paying middle-class jobs. Investing in inclusive growth that harnesses the potential of all Canadians will generate growth, create jobs and boost the economy as it recovers from the COVID-19 pandemic.
A renewed VCCI represents the government's commitment to Canada's VC industry and will support the continued growth of Canada's innovation ecosystem.
"A successful economic recovery in Canada will depend on a Team Canada approach. Renewing the Venture Capital Catalyst Initiative and increasing investments in venture capital demonstrates the importance of the innovation ecosystem in helping Canada's economy fully recover from the impacts of the pandemic. These investments will help businesses scale up and grow, owning the podium in Canada and around the world thanks to their made-in-Canada products and innovations."
– The Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade
Announced in Budget 2017 and expanded in the 2018 Fall Economic Statement, VCCI represents an investment of $450 million.
VCCI has invested in three streams:
To date, VCCI has resulted in the investment of $1.8 billion in the Canadian venture capital ecosystem.
Budget 2021 proposes to invest $450 million to renew VCCI:
Canada is now ranked third for VC investment according to the Organisation for Economic Co-operation and Development.
SOURCE Innovation, Science and Economic Development Canada
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