Introduced in Budget 2017 and expanded in the 2018 Fall Economic Statement, the Venture Capital Catalyst Initiative 2017 (VCCI 2017) is helping to increase the availability of late-stage venture capital (VC) for Canada's high-potential innovative firms, including targeted support for the clean technology sector, and for alternative investment models. Through VCCI 2017, the Government of Canada invested $371 million through three streams:
- Stream 1 investing $279 million in funds-of-funds
- Stream 2 investing $42.5 million in VC funds that support emerging and diverse fund managers, underserved regions, and alternative fund structures
- Stream 3 investing $50 million in VC funds investing primarily in high-growth potential companies in the clean technology sector
VCCI 2017 Recipients
Recipients under stream 1: funds-of-funds
- HarbourVest Canada Growth Fund II
- Kensington Venture Fund II
- Northleaf Venture Catalyst Fund II
- Teralys Capital Innovation Fund 2018
Recipients under stream 2: emerging and diverse fund managers, underserved regions and alternative fund structures
- Brightspark Canadian Opportunities Fund
- Build Ventures II
- Garage Capital III
- Highline Beta
- TandemLaunch III
Recipients under stream 3: clean technology
Recipient fund managers raise additional private sector capital and make investments in VC funds (funds-of-funds stream) and innovative companies (all streams).
Recipients are responsible for engaging with and making their own decisions with respect to investments in venture funds and companies, without involvement from the Government of Canada.
Promoting gender balance in Canadian VC
VCCI 2017 included a focus on improving gender balance among Canadian venture capital (VC) fund managers and companies. Applicants were required to submit gender balance strategies and recipients report on the number of women fund managers and entrepreneurs they support. Reporting has since been expanded to include additional diversity metrics.
For more information on promoting diversity, equity, and inclusion among Canadian VC, please visit the diversity, equity and inclusion in the VCCI page.
Program results and impacts
VCCI 2017 investments have generated significant impacts on the VC ecosystem. Based on latest available data, as of December 31, 2023:
$371 M
invested by the Government of Canada in recipient funds
$1.8 B
raised by recipient fund managers, from public and private investors
$2.9 B
invested in Canadian companies by supported VC funds,Footnote 1 from all investment sources
For more information, please visit the program results and impacts page.