Archived - Governments of Canada and Quebec Invest in New Venture Capital Fund of Funds to Create Jobs and Growth
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New fund of funds will lead to investments in innovative companies across Canada
November 10, 2014 – Montréal, Quebec – Department of Finance
Finance Minister Joe Oliver today announced the Government of Canada’s investment in Teralys Capital Innovation Fund, a private sector-led fund of funds and a key element of the Government of Canada’s Venture Capital Action Plan (VCAP).
Minister Oliver was joined at the event by Quebec Finance Minister Carlos Leitão, as well as lead investors in the Fund.
The Fund, the second fund of funds established under the VCAP, had its initial closing with $279 million in commitments—$186 million from institutional and corporate investors, alongside $46.5 million from each of the Governments of Canada and Quebec.
Teralys Capital Innovation Fund has an emphasis on investment opportunities in the life sciences sector, and will invest primarily in Canada-focused early-stage and mid-stage venture capital funds, and directly in companies across Canada.
Teralys Capital 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. Investment decisions will be made by Teralys Capital on market-based principles in order to maximize returns.
The Governments of Canada and Quebec 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 $62.5 million each. The Fund will seek additional investors to reach its target size and anticipates holding a second closing in 2015.
The initial partners in the Fund are:
- BDC Capital Inc. (on behalf of the Government of Canada)
- Caisse de dépôt et placement du Québec
- Fondaction CSN
- Fonds de Solidarité FTQ
- Investissement Québec (on behalf of the Government of Quebec)
- Knight Therapeutics Inc.
- National Bank
- OpenText Corporation
- The Government of Canada’s investment in Teralys Capital Innovation Fund is the latest step in the VCAP, a $400-million strategy launched in January 2013 by the Prime Minister to help increase private sector investments in early-stage risk capital, and contribute to a vibrant private sector-led venture capital sector in Canada.
- The VCAP includes a commitment to establish up to four private sector-led funds of funds with private sector investors and interested provinces.
- The Business Development Bank of Canada is facilitating the implementation of the VCAP on behalf of the Government of Canada by providing independent expertise, undertaking due diligence, supporting negotiations with funds and other investors, and assisting in the deployment of VCAP investments.
“Canada needs a robust private sector venture capital market that provides investments in start-ups across the country. Our Government remains committed to encouraging innovation and entrepreneurship that fosters the creation of breakthrough technologies and the jobs that come with it. That is why the establishment of Teralys Capital Innovation Fund is so important.”
- Joe Oliver, Minister of Finance
Office of the Minister of Finance
Department of Finance