Government of Canada's Venture Capital Action Plan

From the Government of Canada. In 2013, the Government of Canada 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.