Government Of Canada Launches New $300M Fund For Startups

BY: 

Dave Forde
January 28, 2014

InvestmentOver the last few years the Canadian government has been making some big investments into the startup economy, the latest move has resulted in a new fund aimed at supporting startups.  The Northleaf Venture Catalyst Fund has been created as a private sector-led fund with majority investment from the Government of Canada’s Venture Capital Action Plan (VCAP) who has put in an initial $217.5 million in commitments, of which $145 million is from institutional and corporate investors, and $36.3 million is from each of the Governments of Canada and Ontario. The Fund has an overall target size of $300 million.

Northleaf Venture Catalyst Fund will invest in the early-stage and mid-stage venture capital funds, and directly in companies across Canada. Northleaf Capital Partners has been selected by lead investors to act as the general partner for the Fund, following a fair and competitive selection process led by the Venture Capital Expert Panel appointed by Minister Flaherty. Investment decisions will be made by Northleaf Capital Partners on market-based principles in order to maximize returns.

The Governments of Canada and Ontario have agreed to make a combined capital commitment of $1 for every $2 committed by private sector investors to the new Fund, up to a maximum of $50 million each. The Fund will seek additional investors to reach its target size and anticipates holding a second closing later in 2014.

The initial partners in the Fund are:

  • BDC Capital Inc.
  • BMO Financial Group
  • Canada Pension Plan Investment Board
  • Canadian Imperial Bank of Commerce
  • National Bank of Canada
  • Ontario Capital Growth Corporation
  • OpenText Corporation
  • RBC
  • Scotiabank
  • TD Bank Group

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Dave Forde


Dave “The Connector” Forde has been involved in the marketing, public relations and technology industry across Canada for over 20 years in various sales and marketing roles, he launched The Connected One network of business sites which connects buyers to the right sellers. Profectio and PR In Canada covers news about the marketing and public relations industry each day helping professionals advance their career and businesses. He also serves as an advisor to a number of businesses across the country. Find Dave on LinkedIn and Twitter.


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