Today the federal government announced a $50 million investment to help startups access capital.
The Honourable Jim Flaherty, Minister of Finance, says that this investment is the next step in implementing the Harper Government’s Venture Capital Action Plan, or VCAP, “to help create a vibrant private sector-led venture capital system in Canada.”
According to Flaherty, VCAP includes a commitment by the government to invest in high-performing venture capital funds with a substantial presence in Canada. Through a “fair and competitive selection process that included a comprehensive evaluation,” an expert panel selected four funds that have “demonstrated strong investment performance and are aligned with the objectives of the VCAP.”
These investments are:
• a $15-million investment in Summerhill Ventures II, a fund focused on investment opportunities in the information and communication technologies sector;
• a $15-million investment in CTI Life Sciences Fund II, a fund focused on investment opportunities in the life sciences sector;
• a $10-million investment in Real Ventures Fund III, a fund focused on investment opportunities in the information and communication technologies sector; and,
• a $10-million investment in Lumira Capital II, a fund focused on investment opportunities in the life sciences sector.
“Canada’s long-term economic success in an increasingly competitive, knowledge-based economy will depend, in large measure, on the ability of our dynamic innovative firms to grow into global leaders that invest and create high-quality jobs,” said Minister Flaherty. “Today’s investment will help ensure that Canada’s promising start-up businesses have the resources they need to grow, innovate and create jobs for Canadians.”
The Business Development Bank of Canada will provide support and advice to the government as it implements the VCAP.
Photo: The Canadian Press, Vancouver Sun