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.
