Key Takeaways
- • Ottawa announced the $1.75-billion Venture and Growth Capital Plan in Toronto on Oct. 22, 2026, with Industry Minister Mélanie Joly presenting it as a push to keep later-stage Canadian companies scaling domestically.
- • The plan comprises a $1-billion Venture and Growth Capital Catalyst Initiative (including $700 million for a fund-of-funds stream, $200 million for life sciences and $100 million for emerging fund managers) and a $750-million Early and Growth Stage Investment Strategy.
- • The Early and Growth Stage Investment Strategy allocates $675 million to later-stage companies and $75 million to pre-seed and seed companies.
- • The Business Development Bank of Canada (BDC) will manage the investments on the government's behalf; both initiatives were funded in Budget 2025.
- • Per the government's backgrounder, previous federal venture programs invested $1.2 billion, helped fund managers raise $3.7 billion and supported more than $6.4 billion in investment in Canadian companies.
Summary
The Government of Canada has committed $1.75 billion to a new Venture and Growth Capital Plan, according to an announcement made by Industry Minister Mélanie Joly in Toronto on Oct. 22. The plan is divided into two components. The first is the $1-billion Venture and Growth Capital Catalyst Initiative, which includes $700 million for a fund-of-funds stream designed to leverage private venture capital, $200 million for life sciences, and $100 million for emerging fund managers, including those based outside traditional venture hubs. The second is the $750-million Early and Growth Stage Investment Strategy, which directs $75 million toward pre-seed and seed companies and $675 million toward later-stage companies seeking to scale and remain in Canada.
The Business Development Bank of Canada (BDC) will manage the investments on the government's behalf. Isabelle Hudon, president and CEO of BDC, said that entrepreneurs need "more options to access capital early, scale their businesses and keep them here." Joly framed the initiative as necessary in what she described as a more complex and unpredictable global economy, stating that Canada is investing in "Canadian champions to compete globally, create jobs and strengthen Canada's position as a leader in venture capital." Both initiatives were funded in Budget 2025.
The government's backgrounder cites prior federal venture programs that invested $1.2 billion, helped fund managers raise $3.7 billion, and supported more than $6.4 billion in investment in Canadian companies. The article notes that capital alone does not solve scaling challenges. Startup Genome CEO JF Gauthier argued in June that governments should "stimulate local corporate demand" by connecting startups with corporations willing to become early customers, pointing to procurement as a complementary element of growth policy.
The Business Development Bank of Canada (BDC) will manage the investments on the government's behalf. Isabelle Hudon, president and CEO of BDC, said that entrepreneurs need "more options to access capital early, scale their businesses and keep them here." Joly framed the initiative as necessary in what she described as a more complex and unpredictable global economy, stating that Canada is investing in "Canadian champions to compete globally, create jobs and strengthen Canada's position as a leader in venture capital." Both initiatives were funded in Budget 2025.
The government's backgrounder cites prior federal venture programs that invested $1.2 billion, helped fund managers raise $3.7 billion, and supported more than $6.4 billion in investment in Canadian companies. The article notes that capital alone does not solve scaling challenges. Startup Genome CEO JF Gauthier argued in June that governments should "stimulate local corporate demand" by connecting startups with corporations willing to become early customers, pointing to procurement as a complementary element of growth policy.
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