Venture Capital Action Plan

In 2013, the Government announced the Venture Capital Action Plan (VCAP). It is a market oriented approach to put Canada's VC industry on the path to sustainability, make it more globally competitive, and increase the availability of financing for innovative Canadian firms.

Under VCAP, the Government is deploying $390 million in new capital. In particular, VCAP has made available:

  • $340 million to establish and recapitalize four large scale private sector-led funds of funds in partnership with institutional and corporate strategic investors, as well as interested provinces; and
  • $50 million in four existing high-performing VC funds in Canada.

The four VCAP funds-of-funds attracted significant investments from a diverse set of investors that included pension funds, high-net-worth individuals, corporations, banks, and the Governments of Ontario and Quebec. Including the federal government investment, the four funds-of-funds raised $1.356 billion. Of that, $904 million came from private sector investors.

Funds-of-funds selected under VCAP

  • Northleaf Venture Catalyst Fund
  • Teralys Capital Innovation Fund
  • Kensington Venture Fund
  • HarbourVest Canada Growth Fund

High-performing funds selected under VCAP

  • Lumira Capital II
  • Real Ventures III
  • CTI Life Sciences II
  • Relay Ventures III

VCAP data and impact

VCAP capital is now flowing to leading VC funds to help high-potential start-ups grow and innovate. The Department of Innovation, Science and Economic Development Canada will be releasing regular updates on how the funds raised under VCAP are being distributed, and the companies benefiting from these funds.

VCAP performance management framework

The purpose of this performance management framework (PMF) document is to outline the metrics that will be used to evaluate the performance of VCAP in delivering on its objectives and outcomes. The Department of Innovation, Science and Economic Development Canada is committed to releasing annual reports based on the performance metrics.