Key Takeaways
- • The Government of Canada announced in Budget 2021 that it would make available up to $450 million for a renewed Venture Capital Catalyst Initiative (VCCI), according to the Innovation, Science and Economic Development (ISED) Canada publication.
- • The program is designed to build a portfolio of funds-of-funds and venture capital funds intended to strengthen and broaden Canada's venture capital ecosystem.
- • The Canadian Venture Capital & Private Equity Association (CVCA) described a commitment of CAD $1 billion to recapitalize the VCCI, a figure that differs from the $450 million cited in the design document.
- • Program design parameters were still under development as of the most recent source material, and no disbursements to fund managers had been made.
- • Later program materials refer to a Venture and Growth Capital Catalyst Initiative (Growth VCCI) in which the government co-invests alongside private sector investors.
Summary
The Government of Canada, following its announcement in Budget 2021, committed up to $450 million to a renewed Venture Capital Catalyst Initiative (VCCI), according to the ISED Canada consultation document titled "Designing the renewed Venture Capital Catalyst Initiative: What we heard." The renewed program is intended to build a portfolio of funds-of-funds and venture capital funds that strengthen and broaden the Canadian venture capital ecosystem.
The Canadian Venture Capital & Private Equity Association (CVCA) reported that the government announced a commitment of CAD $1 billion to recapitalize the VCCI. The figure in the CVCA description is higher than the $450 million referenced in the design document, and the available sources do not reconcile the two amounts.
A proposed design document for the renewed VCCI outlines design parameters for the $450 million program. Separate program material indicates that design was still being developed and that no disbursements to fund managers had been made, based on the most recent status note available.
Later materials describe a successor structure, the Venture and Growth Capital Catalyst Initiative (Growth VCCI), under which the government co-invests with private sector investors. Commentary cited in the sources also notes that programs such as the VCCI have helped anchor funds and attract institutional capital.
The Canadian Venture Capital & Private Equity Association (CVCA) reported that the government announced a commitment of CAD $1 billion to recapitalize the VCCI. The figure in the CVCA description is higher than the $450 million referenced in the design document, and the available sources do not reconcile the two amounts.
A proposed design document for the renewed VCCI outlines design parameters for the $450 million program. Separate program material indicates that design was still being developed and that no disbursements to fund managers had been made, based on the most recent status note available.
Later materials describe a successor structure, the Venture and Growth Capital Catalyst Initiative (Growth VCCI), under which the government co-invests with private sector investors. Commentary cited in the sources also notes that programs such as the VCCI have helped anchor funds and attract institutional capital.
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