Government Of Canada Commits To Bolstering Canadian Innovation Through VCCI
CVCA Applauds Government’s Commitment to Strengthening Innovation Companies in Canada
December 18, 2017 – Toronto, ON – The Canadian Venture Capital and Private Equity Association (CVCA) applauds the Government of Canada’s announcement today regarding the details of the Venture Capital Catalyst Initiative (VCCI), a $400 million investment supporting Canada’s innovation ecosystem. The fund is made up of a $350 million commitment that will be matched with private sector investors to invest up to $1.5 billion into Canadian venture capital firms. The remaining $50 million will be dedicated toward investing in funds focused on gender diversity and inclusion. This announcement is perfectly in line with what the CVCA had recommended in the lead up to Budget 2017.
The commitment, announced today by Minister Navdeep Bains and Minister Bardish Chagger, will strengthen the Canadian venture capital industry’s ability to support innovative and high-growth Canadian businesses and jobs. This matching fund of funds investment approach, that invests in Canadian venture capital funds, also has the unique benefit of introducing new investors to Canada’s strong performing innovation ecosystem—a key step towards sustainability.
“Support through the VCCI program reinforces the importance the Government of Canada’s commitment to Canada’s innovation ecosystem,” said Mike Woollatt, CEO, CVCA. “This funding will be instrumental in propelling our country forward; bolstering our industry, and creating the jobs of the future.”
Support for venture capital produces a ripple effect through Canada’s economy. Government support in this manner addresses a key gap in the Canadian innovation ecosystem; funding promising Canadian businesses while creating high-quality jobs, research and development, nurturing sales and growth, and attracting international investment.
“Innovation is Canada’s answer to remain globally competitive and to preserve a standard of living, which attracts and retains the brightest talent in the world,” said Whitney Rockley, Co-founder and Managing Partner, McRock Capital and Chair, CVCA. “The Government of Canada’s financial commitment to support the venture capital ecosystem will help to cement our leadership position in innovative technology areas and, I was very pleased to see for the first time through this approach, they are addressing the importance of diversity and inclusion.”
“Government programs like VCCI help new and innovative companies thrive in this country,” said Ben Zifkin, CEO and Founder, Hubba. “Canadian venture capital works with entrepreneurs to scale Canadian businesses; becoming important pillars of the economy.”
Venture capital investment brings more than just the much-needed capital. Local venture capitalist investors possess the knowledge, experience and contacts that help their investments in Canadian businesses thrive. This announcement will help support this important industry for years to come.