CVCA applauds Government of Canada’s commitment to strengthen
Canadian innovation through additional venture capital support
Budget 2017 continues positive momentum for the private capital ecosystem in Canada;
expanding on the success of VCAP, with new VCCI program delivering $400 million investment with matching funds up to $1.5 billion through BDC
March 22, 2017 – Ottawa, ON – The Canadian Venture Capital and Private Equity Association (CVCA)
is pleased with the contents of the 2017 federal budget; particularly, a much needed $400 million
investment supporting Canada’s innovation ecosystem through the new Venture Capital Catalyst
Initiative (VCCI).
Today’s federal budget demonstrates the government’s assurance in strengthening the private capital
sector to support innovative and high-growth Canadian businesses. By supporting BDC in its efforts to
strengthen the private capital ecosystem in Canada; specifically venture capital, the government will
be assisting in the development of a profitable, globally competitive and self-sustaining innovation
industry.
“We are thrilled to have the government’s continued support,” said Mike Woollatt, CEO of the
Canadian Venture Capital and Private Equity Association. “While we have some work to do in a review
going forward as to the best way forward for VCCI, we are very pleased with an initiative like this
specifically designed to catalyse Canadian venture capital.”
The VCCI has been announced off the heels of the successful Venture Capital Action Plan (VCAP)
program. VCAP was implemented to leverage government funds with private sector investment and
expertise; generating a significant and sustainable impact on the Canadian innovation ecosystem. The
first set of funds were due to be fully committed within the next year. As a result, a renewal of a similar
program was required.
Through private sector leverage, VCAP funds thus far have provided billions of dollars into hundreds
of Canadian companies; exposing the Canadian innovation ecosystem, including venture capital,
entrepreneurs, and technology to a whole new and returning set of investors and customers – a key
step towards sustainability of the entire ecosystem. Not only are programs like the new VCCI integral
in supporting the Canadian economy, if designed properly, will provide attractive returns to the
government and Canadian taxpayers.
Support for venture capital produces a ripple effect through Canada’s economy. Government support
addresses a key gap in the Canadian innovation ecosystem; funding promising Canadian businesses
while creating high quality jobs, research and development, nurturing sales and growth, and
attracting international investment.
Venture capital investment brings more than just the much-needed capital – venture capitalists’
posses the knowledge, experience and contacts that help their investments in Canadian businesses
thrive.
We are also pleased to see that the tax expenditure review exercise has maintained those measures
intended to support innovation and investment. The CVCA will continue to make this case through the
ongoing review of tax expenditures that increases in taxes on investment is not the way forward.
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About the CVCA
The CVCA is the voice of Canada’s venture capital and private equity industry. We are focused on
improving the private capital ecosystem by broadening industry awareness and providing market
research, networking, and professional development opportunities. We also advocate on behalf of the
industry to ensure sound public policy that encourages a favourable investment environment. The
CVCA works alongside its members, who represent the vast majority of private capital firms in Canada,
to improve the industry and drive innovation and growth. Please visit: http://www.cvca.ca.
For more information or to arrange an interview, please contact:
Carolyn Goard
Senior Manager, Communications
Direct: 416-487-0519, ext. 204
Mobile: 416-706-7879
Email: [email protected]