Many Canadian entrepreneurs, both anecdotally and in industry surveys, lament the lack of funding for early-stage ventures that's available here, relative to what they can find south of the border.
One new development that may at least begin to help with those concerns: late last month Premier Kathleen Wynne announced that the province, in conjunction with the federal government and several private sector partners, has launched a new venture capital fund. The Northleaf Venture Catalyst Fund had a total of $217 million in commitments at its first closing, and is aiming to hit $300 million in short order.
In order to raise the starting pool of money the provincial and federal governments are matching private investor contributions (one dollar for every two the private sector invests), up to a total of $50 million each. The fund takes its name from Northleaf Capital Partners, the Toronto-based firm that is managing it. It is a "fund of funds"—a fund that invests in other funds—and is in addition to (not a replacement for) the existing Ontario Venture Capital Fund. The latter launched in 2008 and has, according the provincial government, "attracted $872 million in private sector capital while creating and retaining 1,500 jobs in the province."
The Northleaf Catalyst Fund is the first provincial fund launched under the federal governments
Venture Capital Action Plan, which was announced a year ago, and which will distribute $400 million over the next 7-10 years.
Writer: Hamutal Dotan
Source: Office of the Premier