It further expands this commitment through an Inclusive Growth Framework that will apply to all renewed VCCI streams and requires all applicants to collect gender and diversity metrics, as well as implement policies and practices that promote DEI principles internally, in building their portfolios and in the broader VC ecosystem. The renewed VCCI goes further by introducing an inclusive growth stream to support access to VC for traditionally underrepresented groups, particularly women and racialized communities. The VCCI introduced in Budget 2017 included a strong focus on supporting gender balance. The renewed VCCI follows on a tradition of demonstrating global leadership in DEI in VC. According to recent research from the CVCA and Diversio, traditionally underrepresented groups face challenges in the VC industry: they make up a minority of the investors, and entrepreneurs from these demographic groups are less likely to seek equity financing and when they do, they are more likely to be turned down or to receive relatively less money for their businesses. The Government of Canada is committed to advancing diversity, equity, and inclusion (DEI) to encourage the Canadian VC industry to be representative of the Canadian population. Diversity, equity, and inclusion in Canadian venture capital Interested candidates are encouraged to apply. In addition, the Government will establish a private sector Selection Committee to evaluate incoming proposals and provide recommendations to the Deputy Minister of Innovation, Science and Economic Development Canada (ISED) on which applicants to select for the renewed VCCI. Inclusive growth stream investing up to $50 million to support increased access to VC for underrepresented groups, such as women and racialized communities.ĭetailed information on the submission process can be found in the Call for Expression of Interest package below. Life sciences stream investing up to $50 million in VC funds primarily focused on investing in high-growth potential technology companies Canada's life sciences sector and,.Funds-of-funds stream investing up to $350 million in funds-of-funds.This will be accomplished through the introduction of three new streams under VCCI: The renewed Venture Capital Catalyst Initiativeīuilding on the momentum of these investment, the Government's renewed commitment to the VCCI will help increase the availability of capital for Canada's high-potential innovative firms, including those in the life sciences sector and for entrepreneurs from underrepresented groups, such as women and racialized communities. The Canadian Venture Capital and Private Equity Association (CVCA) attributes much of this growth to the Government of Canada's support for VC, including through the Venture Capital Action Plan (VCAP) and earlier investments made under the VCCI (Budget 2017). As a result, Canada is now ranked third for VC investment according to the Organisation for Economic Co-operation and Development (OECD). Canada's VC ecosystem has experienced considerable growth in recent years with 2021 setting a new record in total investment, $14.7 billion of VC investment in Canadian start-ups. Venture capital (VC) is a specialized type of equity financing that takes educated risks on great ideas and talented people by investing capital in young, high growth-potential companies to give them the opportunity to develop their ideas into marketable products. Specifically, new funding for the Venture Capital Catalyst Initiative (VCCI) will build on earlier investments to ensure Canadian businesses continue to enjoy access to a globally competitive venture capital ecosystem capable of nurturing entrepreneurial talent and creating high-quality, middle-class jobs. It fosters a thriving middle class and opens the country to new economic, social and environmental possibilities.Īs part of Budget 2021, the Government is making historic investments to support Canadian entrepreneurs in their efforts to start up, scale up, and become the next generation of Canadian anchor companies. Innovation is the path to inclusive growth. OverviewĪs we emerge from the COVID-19 crisis, a priority of the Government of Canada is to put Canada's economy on a stronger footing, both for Canadians today and future generations. Notice: the deadline for the second intake of the inclusive growth stream has been extended to September 20, 2023.
0 Comments
Leave a Reply. |