TORONTO, July 30,
2024 /CNW/ - Investments and access to capital are
key to growing and supporting startups with high growth potential.
This is especially true for entrepreneurs who have traditionally
been under-represented in the start-up space, including women and
members of Indigenous, Black and 2SLGBTQI+ communities.
Today, the Honourable Rechie Valdez, Minister of Small Business,
announced the Government of Canada's second $25 million investment in
five more venture capital (VC) fund managers as part of the
inclusive growth stream of the renewed Venture Capital Catalyst
Initiative (VCCI). The five VC funds managers are:
- Amplify Capital
- Pender Ventures
- Raven Indigenous Capital Partners
- StandUp Ventures
- TandemLaunch Ventures
This second round of new funding completes the $50 million in inclusive growth investments
included in the renewed VCCI. The inclusive growth stream will help
advance diversity, equity and inclusion in the Canadian VC
ecosystem by increasing access to capital for diverse fund managers
and entrepreneurs so they can continue to transform new ideas into
innovative business solutions for Canadians, strengthen our economy
and create good jobs.
As part of a combined $450 million
investment in venture capital funds and funds of funds, the renewed
VCCI is expected to inject at least $1.6
billion into Canada's
innovation capital market when leveraged with other public and
private investments. These investments are expected to generate
returns for the government. Budget 2024 also committed an
additional $200 million to
support venture capital for equity-deserving entrepreneurs and
to invest in underserved start-up ecosystems outside key
metropolitan areas.
Each recipient will be required to report their progress on
enhancing diversity and gender equality across the VC ecosystem.
This will help ensure that more firms owned by women and other
members of under-represented communities in the small and
medium-sized enterprise space have access to the capital they need
to scale and grow, and it will strengthen Canada's economy.
Quotes
"Supporting diverse and under-represented entrepreneurs in the
venture capital sector is not only the right thing to do; it is
also essential to boosting Canada's economy to its full potential. This
new round of VCCI funding is going to address historic challenges
for entrepreneurs and start-ups led by diverse individuals, who
have historically and unfairly encountered barriers to funding
because of their identity. Our government is committed to giving
everyone a fair chance at bringing their passion and innovative
ideas to the table, no matter who they are or where they come from.
We're doing this by making more capital available to firms led by
women and other members of under-represented communities, which
will jump-start the development of the new generation of bright and
diverse Canadian entrepreneurs and innovators."
– The Honourable Rechie Valdez, Minister of Small Business
Quick facts
- Together with investments from the private sector, the renewed
Venture Capital Catalyst Initiative (VCCI) is expected to inject
around $1.6 billion into Canada's innovation capital market.
- The recipients announced today were chosen as a result of a
rigorous selection process informed by a private sector selection
committee of highly qualified industry experts as well as experts
at the Business Development Bank of Canada (BDC) and Innovation, Science and
Economic Development Canada.
- 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 invested in 660 deals
in 2023. 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 strengthen the capacity of women entrepreneurs to access VC
funding, contribute to the increasing representation of women in
the VC industry, and help ensure that the VC industry is sensitive
to gender and potential unconscious bias.
- BDC is Canada's most active
single VC investor, managing over $4.2
billion in VC investments. 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, 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.
Associated links
- Venture Capital Catalyst Initiative
- Minister Valdez announces new investments to help diverse
entrepreneurs grow their businesses
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SOURCE Innovation, Science and Economic Development Canada