Feds to fund cleantech small business

BDC’s Michael Denham

OTTAWA – The Government of Canada is investing $50 million in venture capital for Canadian clean technology companies through the new Clean Technology Stream of the Venture Capital Catalyst Initiative (VCCI).

Applicants are invited to submit an application by March 1, 2019. To promote an inclusive economy and improve gender balance in venture capital, each applicant will require a gender diversity strategy. Promoting gender diversity in venture capital is an objective of all three streams.

This investment, administered through BDC, responds to the advice of the Clean Technology Economic Strategy Table and complements the Pan-Canadian Framework on Clean Growth and Climate Change as well Canada’s Innovation and Skills Plan.

“BDC is committed to helping build globally competitive clean tech firms at all stages of development, and BDC Capital, our investment arm, is a long-time investor in this space,” said Michael Denham, president and CEO, BDC.

“Through our Industrial, Clean and Energy (ICE) Technology Venture Fund and our Cleantech Practice, we help innovative clean tech firms meet the capital-intensive needs of scaling and achieving timely growth to succeed on the global stage. We look forward to having more and better-capitalized co-investors in this space via the VCCI Stream 3 investments.”

Access to late-stage capital is critical to helping Canadian companies scale and compete. So far the Government of Canada has invested $350 million in Canada’s growing venture capital ecosystem in VCCI Stream 1 and an additional $50 million in VCCI Stream 2 to increase regional, sectoral and gender diversity in venture capital. The latest investment of $50 million in VCCI Stream 3 will support clean tech companies.

The Government of Canada’s investments are matched by the private sector and will contribute up to $1.5 billion to Canada’s economy and support up to 30,000 jobs in emerging sectors.