The global economy is undergoing profound change, with shifting trade dynamics and the rise of tariffs. That is why the Government of Canada is taking bold action to strengthen venture and growth capital investment in Canada. By investing in our innovation and technology ecosystem, we are unlocking more private capital so homegrown innovators and entrepreneurs can grow and scale globally leading products and services here at home and build a stronger, more resilient Canadian economy.
Today, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, announced the Venture and Growth Capital Catalyst Initiative (Growth VCCI), through which the federal government will provide $1 billion on a cash basis, starting in 2026-2027. Through this program, the government will catalyze private capital investment and will invest alongside the private sector through three streams:
- the $700 million Fund-of-Funds stream, focused on leveraging private venture capital (VC) by incentivizing private investors and attracting pension funds and other institutional investors
- the $200 million Life Sciences stream, focused on Canadian VC fund managers that target support for Canadian life sciences companies to innovate and grow
- the $100 million Emerging Manager stream, focused on supporting Canadian emerging fund managers, including those focused on strategic sectors and those located outside traditional VC hubs
Minister Joly also announced that the call for expressions of interest for the Fund-of-Funds stream of Growth VCCI is now open and accepting applications. The funding will leverage at least an additional $2.1 billion in investment from private capital investors, such as pension funds and other institutional investors.
Innovation, Science and Economic Development Canada is seeking applications from qualified fund-of-funds managers under the program, which can include private capital fund managers, pension funds and others. For private capital investors, the Fund-of-Funds stream offers attractive features such as risk sharing, enhanced exposure to performance, and an opportunity to invest at scale in funds and companies across Canada's world-class innovation and technology ecosystem. Selected fund managers will strengthen Canada's venture capital ecosystem, unlock private capital and support long-term economic growth.
The call for expressions of interest is open until noon (PCT) on January 21, 2027.
Minister Joly also unveiled Canada's Early and Growth Stage Investment Strategy, a new $750 million plan to address early- and growth-stage funding gaps for scaling firms at two pivotal stages of development. The strategy has two streams:
- the Pre-Seed and Seed Investment Stream ($75 million) to support domestic investment in companies at the earliest stages of development that helps them progress to Series A and beyond
- the Later and Growth Stage Investment Stream ($675 million) to support domestic investment in companies at later stages that helps them scale and remain anchored in Canada
Investments in Canadian funds under the strategy will be administered by the Business Development Bank of Canada (BDC) on the government's behalf.
The Government of Canada, in collaboration with BDC, is seeking stakeholder views to inform the design of the strategy's Later and Growth Stage Investment Stream. The Discussion guide: Later and Growth Stage Investment Stream
