Joly to announce how Ottawa will allot $1.75 billion for venture capital
Industry Minister Mélanie Joly will announce on Thursday how Ottawa will allot $1.75 billion, committed in last November's federal budget, to venture capital firms. The announcement is scheduled for 1:30 p.m. ET, according to a Government of Canada media advisory.
Venture capital, or VC, is private money invested in young and growing companies. The government already runs programs to support it. Last November's budget proposed $1 billion over three years for the Business Development Bank of Canada (BDC) to launch the fourth version of a VC support program that began 13 years ago under Stephen Harper's Conservative government. The three earlier versions ranged in size from $390 million to $450 million.
The new program is called the Venture and Growth Capital Catalyst Initiative, or VGCCI. According to the Globe and Mail, it includes $700 million for funds-of-funds managers, which finance VC firms that back growing companies. Those recipients must raise $3 from private investors for every $1 from Ottawa.
VGCCI also sets aside $200 million for domestic VC fund managers that back Canadian life sciences companies, and $100 million for emerging fund managers. The emerging-manager money is aimed in particular at funds focused on strategic sectors and located outside the traditional VC hubs. Recipients of the life sciences and emerging-manager money must raise at least $1 privately for every $1 from government.
The federal funding is an investment, not a grant. Ottawa receives its share of any returns only after the other investors have been paid out.
Separately, the budget proposed $750 million for a new program aimed at Canadian firms facing funding gaps in the early stages of growth. Of that sum, $675 million would flow through the BDC to Canadian investors who fund later-stage domestic companies. The remaining $75 million would support pre-seed and seed-stage companies, the firms at the earliest stages of development.
The National Angel Capital Organization had asked for $500 million to match investments by early-stage financiers, plus $250 million for operational infrastructure.
Private investment in the sector is growing. Venture capital investment in Canada rose 17 per cent to $2.69 billion across 250 deals in the first six months of 2026, according to Yahoo Finance Canada.
