Government of Canada | Gouvernement du Canada
Symbol of the Government of Canada
Skip to content | Skip to institutional links

Common menu bar links

Home > Research Reports > Risk Capital > Venture Capital > Canadian Venture Capital Activity: An Analysis of Trends and Gaps (1996-2002)

FirstPreviousNextLast

Canadian Venture Capital Activity: An Analysis of Trends and Gaps (1996–2002)

Appendix B: Summary of Federal Government Programs

Program

Goal/ Objectives
Description

Status

Atlantic Canada Opportunities Agency (ACOA)
ACF Equity Atlantic Inc.





















  • This VC firm manages a $30 million VC fund targeted at growth-oriented SMEs in the Atlantic region.
  • Capital is provided through a partnership between ACOA, the four Atlantic provincial governments, seven chartered banks and a credit union.



  • Quasi-equity and equity investments
  • Investments from $500 000 to $1.5 million are available to innovative companies in all industrial sectors, including high-knowledge areas such as information technology, life sciences and marine technology.
  • The fund can invest up to $3 million in any one company. An ACF representative is a member of the investee company's board of directors and the fund provides strategic advice and assistance.
  • Active and fully committed.
  • ACF has invested $18.2 million in 13 companies and has leveraged a further $80 million in VC. The balance of the fund is reserved for follow-on investments.
  • In 2002, a total of $2.8 million was invested.











Atlantic Innovation Fund














  • With $300 million over five years, AIF provides risk capital to companies at the R&D stage.








  • Quasi-equity investments
  • The fund is focussed on key KBI cluster investments and it supports commercially relevant R&D in Atlantic Canada.









  • Active and to become fully committed in 2003.
  • AIF Round I in July 2002 approved 47 investments totalling $155 million. This was leveraged by a further $185 million.
  • On September 9, 2003, the Minister of State for ACOA announced that $136 million under the AIF would be invested in 54 R&D projects in Atlantic Canada.
Atlantic Region Investment Fund











  • ACOA has participated in three Atlantic region investment funds: Telecom Applications Research Alliance (TARA), PEI Capital and NB Workers Investment Fund.
  • Quasi-equity and equity investments
  • These funds include TARA, a $2.2 million fund from ACOA; and PEI Capital, a $2-million fund from ACOA.








  • Active. A total of $1.8 million invested in 2002.












Business Develop-
ment Program (BDP)





  • BDP is a risk capital fund that provides repayable financing to SMEs, primarily for innovation and export promotion.
  • Quasi-equity investment
  • The loans are in the form of patient capital with flexible terms of repayment.




  • Active. Every year, BDP lends between $70 million and $80 million to local SMEs.





Business Development Bank of Canada (BDC)
Innovation Loans and Subordi-
nate Financing








  • Loans support profitable growing businesses that lack tangible assets to offer as security.




  • Quasi-equity investments
  • Loans of up to $250 000 are available for expansion purposes, with flexible repayment conditions.
  • Investments of between $250 000 and $5 million are available for expansion, market development and management buyouts.
  • Offered through all BDC branches in Canada.
  • In 2002, BDC Subordinate Financing invested $107 million in 549 transactions.







Seed Financing Fund

















  • BDC is establishing a technology seed investment program to increase the supply of seed financing.











  • Equity investments (targeted at suppliers of VC)
  • The seed fund could make pre-seed, seed, and start-up VC investments and leverage more VC funds from both BDC and other VC investors.
  • In a typical project, BDC will make pre-seed and seed investments and attempt to leverage other funds from governments, angels and other seed investors to get the project launched.
  • A total of $40 million was invested in four seed funds: Western Technology ($10 million), Eastern Technology ($15 million), T2C2/Bio ($7.5 million) and T2C2/Info ($7.5 million).










Specialized VC Funds







  • BDC wants to increase the supply of VC in Canada and to support private fund managers.


  • Equity investments (targeted at suppliers of VC)
  • BDC acts as a limited partner and limits its participation to a maximum of 20 percent of the size of the fund.

  • BDC is actively investing and has participated in five funds. It intends to invest in 12 to 15 funds.
  • A total of $38 million was invested in five specialized funds.
Venture Capital

































  • BDC makes VC investments at any stage of a company's development, from seed to growth, and from acquisition or expansion to turnaround, including both private and publicly listed companies.



















  • Equity investments
  • BDC has invested primarily in early-stage companies in the life sciences, advanced technology, telecommunications and information technology sectors.
  • BDC makes first-round investments ranging from $500 000 to $3 000 000, either as a sole investor or as a syndicate partner. The average transaction size is between $1.5 million and $2 million.
  • In addition, through its inclusion on the investee company's board of directors, BDC provides management support.










  • From 1994 to October 2002, BDC made cumulative VC investments totalling $406 million, 90 percent of which was invested in KBIs.
  • Of this $406 million, 74 percent was early-stage financing and 22 percent was expansion-stage financing.
  • Regionally, 39 percent was invested in Ontario, 28 percent in Quebec and 21 percent in British Columbia. The remainder went to the Prairie (7 percent) and Atlantic (5 percent) regions.
  • In 2002, BDC held 4 percent of the Canadian VC market by value ($89.7 million) and 7 percent by numbers with a total of 57 financings.
  • BDC's VC operations continue to grow and BDC has consolidated its role as an early-stage investor in KBIs.
Canada Economic Development for Quebec Regions (CED)
Multimedia Experi-
mentation Fund




























  • The fund supports the pre-start-up phase of technology projects within the multimedia field.























  • Quasi-equity investments (patient repayable and non-repayable financing)
  • The fund is an initiative of CED in partnership with Alliance NumeriQC that provides non-repayable financial support covering a portion of the project's pre-start-up costs, as well as repayable financial support covering expenses incurred for business incubation services.
  • The non-repayable contribution of the fund can amount to a maximum of $50 000 or 50 percent of the pre-start-up costs. In exceptional cases, this amount can be extended to $75 000 per project.
  • Repayable financing can cover up to a maximum of $25 000 for incubation services.
  • Active. Funding for this program amounts to $2.4 million over three years (or about $800 000 per year).



























IDEA-SME





































  • IDEA-SME fosters the establishment of strategic enterprises.
  • IDEA-SME promotes SME's increased competitive-
    ness through innovation and productivity and through strengthening of commercial-
    ization capabilities.



















  • Quasi-equity investments (patient repayable financing)
  • Investments cover eligible costs under IDEA-SME.
  • Repayable financing will normally not exceed 50 percent of eligible costs.




























  • As a member of the Industry Portfolio, the agency has 14 business offices across Quebec. All the new initiatives supported by CED during the 2001-02 fiscal year should over time generate investment totalling more than $1.7 billion across Quebec.
  • The strategic outcome is to foster enterprise development to support pre-start-up, start-up and expansion with total financial assistance of $192 million in 1100 SMEs.
  • CED manages the Community Futures Program and has horizontal initiatives working closely with several departments and agencies in the Industry Portfolio and other federal and provincial departments, such as the DFAIT Program for Export Market Development (PEMD), which has made 244 repayable contributions since 1999.
Société de soutien aux projets d'imagerie numerique pour le cinema (SPINC)
  • This project supports young, innovative enterprises in cinema, television and Web TV.
  • Quasi-equity investments (patient repayable financing)
  • The project provides repayable financing to a maximum of $100 000 per project.

  • Funding for this program from IDEA-SME amounts to $3 million over three years.



Community Futures Programs
Community Futures Develop-
ment Corpora-
tions (CFDCs)

































  • CFDCs are governed by volunteers on the boards of directors.
  • Non-profit corporations are financed by Industry Canada and by the federal regional development agencies that finance local SMEs.
























  • Quasi-equity and equity investments
  • CFDCs provide businesses with loans, loan guarantees or equity investments of up to $125 000.
  • The CFDC's board of directors assesses and approves investment applications.





























  • Active. As of March 31, 2002, 57 Quebec CFDCs had invested $111 million.
  • In Ontario, from 1997 to 2002, CFDCs provided $96.4 million in Northern Ontario and $108.4 million in Southern Ontario. However, CFDCs made very few equity investments during that period.
  • In Atlantic Canada, from April 1, 1995, to March 31, 2002, 41 CFDCs made 8400 loans to SMEs, totalling $220 million. In addition, for 2001-02, CFDCs undertook guarantee and equity activities totalling $287 000.
  • In Western Canada, between April 1995 and September 2002, 90 CFDCs made 13 862 loans totalling $336 million, of which $141 million was invested in British Columbia, $113 million in Alberta, $45 million in Saskatchewan and $37 million in Manitoba.
  • This program is ongoing and active in all regions.
CFDC Investment Pools












































  • Individual CFDCs have not been able to meet requests for financing above their normal maximum of $125 000. This fact has led to the development of various types of pooling arrangements among CFDCs under the leadership of the regional agencies.

























  • Quasi-equity and equity investments
  • In the case of FedNor, CFDCs in Eastern and Northeastern Ontario have initiated two types of resource pooling arrangements.
  • Five Eastern Ontario CFDCs have an agreement to pool resources to undertake equity and quasi-equity investments of over $125 000.
  • In Northeastern Ontario, CFDCs work together to facilitate larger investments by combining funds from individual CFDCs in each deal.
  • In Western Canada, CFDCs in both Alberta and British Columbia have established loan pool arrangements and a study is under way to develop a mechanism for CFDCs to set up a similar pool in Saskatchewan and Manitoba.
  • In Atlantic Canada, the Atlantic Canada Community Business Investment Fund will pool ACOA's annual allocation of CFDC investment funds in a central account. This money will provide individual CFDCs with additional repayable funds to address increases in lending demand.
  • Active.
  • The Eastern Ontario pool has invested $2.1 million in quasi-equity financing over the past 18 months and has leveraged an additional $11 million from other investors. No equity investments have been made. It has also not been able to attract funding for the pool from other investors.
  • The Northeastern Ontario facility has concluded deals totalling $3.3 million and has leveraged a further $8.7 million.
  • This program is being explored further to determine whether it can be expanded across Ontario and perhaps into other regions.



















Federal Economic Development Initiative in Northern Ontario (FedNor)
Applied R&D Programs
























  • These programs support SME R&D, which increases the SME's overall competitive position in Northern Ontario.

















  • Quasi-equity investments that increase demand for VC
  • These programs will cover the costs to develop new products and services in Internet technologies, telecommunication and information systems; IT hardware and software; and generally high value-added products.
  • Costs associated with first-time marketing of the results of this R&D may also be eligible if identified when application is made for R&D funding.
  • Contributions will normally not exceed 50 percent of eligible costs, to a maximum of $500 000.
  • Active (founded in 1997).
  • A limited program in terms of uptake. Loans totalled $2.7 million from 1999 to February 2003.




















FedNor/ BDC — Loan Loss Reserve Fund







  • This fund leverages up to $15 million in funding for SMEs and projects that require growth capital.




  • Quasi-equity investments (loan loss reserve)
  • Eligible loan sizes will be between $25 000 and $500 000.
  • FedNor's support for this Loan Loss Reserve Fund is calculated at 20 percent of eligible loans made by the BDC.
  • Active. Program effective December 2002 to December 2005.
  • As of June 30, 2003, 13 loans had provided $1.2 million.





FedNor/ Credit Unions — Loan Loss Reserve Fund







  • This fund leverages up to $15 million in commercial lending for SMEs among participating Northern Ontario credit unions.



  • Quasi-equity investments (loan loss reserve)
  • Eligible loan sizes are between $25 000 and $500 000.
  • FedNor's support for this Loan Loss Reserve Fund is calculated at 20 percent of eligible loans made by participating credit unions.
  • Active. Program effective January 2001 to March 2004. Initial uptake was slow but has been increasing steadily. By May 31, 2003, 26 loans totalling $4.1million had been approved.




Genome Canada
Genome Canada






























  • Genome Canada is the primary funding and information resource relating to life sciences, genomics and proteomics in Canada.





















  • Quasi-equity investments and R&D grants that increase the demand for VC
  • Genome Canada will invest, case by case and through competitions, in companies that conduct promising R&D. It is also developing a proof of concept for a seed investment fund and is establishing close links with international VC sources.
  • It received $300 million from the Government of Canada to establish five genome centres across Canada, which work closely with provincial governments, the private sector, the financial community, and national and international foundations to support genomics research.
  • Active.
  • In April 2001, a first competition was announced, involving $136 million to support 17 projects.
  • A second competition in April 2002 provided $155 million to support 34 projects.
  • Genome Canada projects are ongoing and proposals have been made to expand these programs.
  • In September 2002, Genome Canada made its first investment, $6.2 million in a Quebec start-up biotechnology company.










National Research Council (NRC)
Industrial Research Assistance Program (IRAP)
























  • This program provides cost-shared financing of research and pre-competitive development technical projects.
  • IRAP also provides advisory services through industrial technology advisors. One third of these advisors are NRC employees and two thirds work for network members who receive contributions from NRC.
  • Quasi-equity investments and R&D grants that increase the demand for VC
  • For smaller companies, funding for between 40 and 50 percent of eligible project costs is available, to a maximum of $15 000.
  • For larger companies (with fewer than 500 employees), funding is available for between 40 and 50 percent of project costs, to a maximum of $350 000, for up to 36 months.










  • Active.
  • From 1996 to March 2002, IRAP provided financing totalling $493 million, with $97.7 million of that coming in 2001–02.






















Natural Sciences and Engineering Research Council (NSERC)
Networks of Centres of Excellence (NCEs)







































  • NCEs mobilize Canada's research talent in the academic, private and public sectors and apply this talent to develop the economy and improve Canadians' quality of life. The NCE program is an integral part of the federal government's Innovation Strategy and is provided with $77.4 million per year. The program is a tri-council initiative (NSERC, SSHRC and CIHR), in partnership with Industry Canada. NSERC hosts the NCE directorate.






  • Increase demand for VC
  • The NCE program currently funds 21 NCEs in life sciences, information and communication technologies, environment, engineering and manufacturing.
  • Networks bring together top researchers from universities across the country to work with industry and government on research projects of strategic importance for the country.
  • More than 1500 partners, including 778 companies, participate in these NCEs. In an average year, these NCEs will do the following: leverage additional cash and in-kind contributions in excess of $80 million, create close to 10 spin-off companies, file more than 70 patents and negotiate more than 100 licences, and train more than 1500 graduate students.
  • For more details on the NCE program and individual NCEs, consult the NCE Web site at www.nce.gc.ca
  • Active. Total funding of $77.4 million per year.
  • The NCE program runs regular competitions to renew existing networks and to launch new ones. The 2003 competition launched two new NCEs. The next competition, for NCEs that will start in 2005, was announced in March 2003.
  • NCEs have been associated with more than 90 spin-off companies. NCEs help research teams transfer their technology to industry, to launch spin-off companies and to secure start-up funding.

















NSERC















  • Canada's largest university research funding body invests in people, discovery and innovation to build a strong Canadian economy and to improve the quality of life of all Canadians.
  • R&D grants that increase the demand for VC
  • NSERC annually supports more than 9000 university professors through its research grants and more than 15 500 students through its scholarship, fellowship and grant programs.




  • NSERC invests over $611 million per year (exclusive of flow-through programs) in university-based research in the natural sciences and engineering.








NSERC — Research Partnership Programs












































































































  • These programs stimulate university-industry collaboration to accelerate knowledge and technology transfer and industry investment in research and training by sharing the risks, costs and benefits of research.
  • These programs support university-based research, applications development, technology transfer and people.
  • These programs support proof of concept, technology transfer and cost sharing with VC and Canadian-based business.







































































  • Programs that increase demand for VC
  • NSERC's research partnership programs support almost 700 university-based projects with industry and government partners, stimulating industry investment in research ($100 million in cash and $70 million in kind in 2002), technology transfer and commercialization.
  • Specific programs include the following:
    • Strategic Projects (research in targeted areas of national importance with non-academic partners)
    • Research Networks (research clusters with partners)
    • Collaborative R&D Grants (joint university-industry projects, shared costs)
    • Research Partnership Agreements (universities, industry and labs collaborate and share costs)
    • Industrial Research Chairs (industry shares the costs with university and NSERC)
    • NSERC-IRAP/ University-SME Projects (joint pilot to increase the interaction of universities and SMEs in national and international projects)
    • Idea to Innovation (supports university research through the early stages of proof of concept and technology validation leading to cost sharing with VC or Canadian SMEs at the point of technology transfer and commercialization)
    • Intellectual Property Management (joint NSERC, CIHR and SSHRC program that provides $5 million per annum in critical infrastructure support for the intellectual property management, technology transfer and commercialization of university- and hospital-based research results, focussing on increasing the flow of IP to Canadian companies by increasing the expertise and expanding their services and networks)
    • Regional Training Initiative (NSERC, CIHR and SSHRC pilot program that supports three regional networks, in Quebec, the Atlantic and the West, to train increased numbers of experts in technology transfer and commercialization and SMEs and VC participate in this program as training venues)
  • NSERC's research partnership programs are ongoing, with new applications accepted throughout the year.
  • In 2002–03, NSERC will invest $117.5 million or 20 percent of its annual budget in programs to stimulate and support research collaborations among university, industry and government researchers, and to encourage technology transfer.
  • NSERC, through its Ideas to Innovation Program (launched in 2003), Intellectual Property Management Program (launched as a tri-council initiative in 2001) and the Networked Training Initiative (launched in 2002), supports activities that directly affect the technology transfer and commercialization of university research results.














































































Technology Partnerships Canada (TPC)
TPC



















































  • Technology Partnerships Canada (TPC) is a Special Operating Agency of Industry Canada with a mandate to provide strategic conditionally repayable contributions in the areas of research and development, and demonstration projects that will produce economic, social and environmental benefits to Canadians.
  • The program supports both large-scale technology R&D and demonstra-
    tion projects    , as well as smaller projects aimed at SMEs (firms with 500 employees or less) through the TPC- IRAP initiative. In addition, TPC's Supplier Development Initiative (SDI) provides support to SMEs in the aerospace and defence industry.
  • Quasi-equity investments (patient repayable financing)
  • Established in 1996, TPC had initial funding of $150 million. Incremental increases since that time bring TPC's annual budget to approximately $300 million.
  • The TPC agency delivers two separate and distinct programs: the TPC research and development (TPC R&D) program, and the h2 Early Adopters (h2EA) program.
  • The TPC R&D program supports individual companies in pre-competitive development projects that develop new technologies. It also encourages the development of SMEs in all regions across the country.
  • The h2EA program supports demonstration projects, which will enable groups of two or more to test and showcase their existing technologies in working integrated models that will contribute to the development of a hydrogen economy.










  • As of March 31, 2002, approximately $1.9 billion in investment sharing for 424 active projects had been approved by TPC. These investments include 365 R&D projects initiated by SMEs, or 86 percent of all TPC projects. These figures include IRAP- TPC.
  • TPC has reviewed its operations and will be asking Cabinet for administrative and operational changes to better position the program to support innovation.































IRAP- TPC Initiative















  • The IRAP-TPC initiative is a partnership with NRC's Industrial Research Assistance Program (IRAP) that was launched in 1998 to help TPC deliver its mandate toward SMEs.


  • Quasi-equity investments (repayable R&D funding)
  • IRAP-TPC has a $30 million annual budget (shared between TPC and NRC's IRAP). This initiative provides financial assistance to SMEs (500 or fewer employees) with eligible project costs of under $1.5 million ($3 million as of March 2003).
  • IRAP-TPC has a $30 million annual budget, shared between IRAP and NRC.
  • The IRAP-TPC partnership was renewed in March 2003 for five additional years.







Western Economic Diversification (WD)
Agricultural Value-Added Fund











  • This program was originally offered jointly with CIBC and the FCC to provide loans to agricultural processors. Recently, CIBC ended its participation in the fund.


  • Quasi-equity investments (patient repayable loans)
  • Loans can range from $50 000 to $1 million and have repayment periods of up to 10 years. Interest can be capitalized for up to two years and up to two thirds of principal payments can be postponed through the term of the loan.
  • Active. Funding under the FCC fund is scheduled to continue until September 2005.










Knowledge and Growth Fund













  • This is a cooperative venture between WD and VanCity Capital Corporation to provide loans with flexible repayment schedules to SMEs in British Columbia's traditional industries.

  • Quasi-equity investments
  • This funding has been used for R&D, commercial product development, new production capacity, market development and export expansion.
  • The fund provides patient loans of up to $500 000, with exceptions for larger amounts if they fit within the spirit of the program.
  • Active. Financing under the VanCity fund is scheduled to continue until April 2004.











Knowledge and Growth Loan Fund






















  • Supporting new product R&D and market expansion in Western Canada, this fund and its predecessor fund (the Knowledge-based Industries Loan Fund) have been cooperative ventures between WD and the BDC that provide patient capital (quasi-equity) loans to SMEs.

  • Quasi-equity investments (patient repayable loans)
  • This equity-style financing is composed of term loans that have flexible repayment terms geared to earnings.
  • This fund does not involve any dilution of ownership or loss of control on the part of entrepreneurs.
  • The loans are for up to $250 000 per project and include a mentoring program.







  • Active. Financing under the current BDC fund is scheduled to continue until April 2004.
  • Financing under the four major funds with the BDC, CIBC, VanCity and Farm Credit Canada (FCC) totalled $92 million to September 30, 2002. In addition, another $62 million was provided by two former funds with Royal Bank and TD Bank, but these have been discontinued. These funds were supported by conditionally repayable loan loss reserves of $23.2 million contributed by WD.
Knowledge-Based Business Loan Fund

















  • The Knowledge-based Business Loan Program is a cooperative venture between WD and CIBC that provides patient capital (quasi-equity) loans to SMEs in Western Canada. It also funds R&D, new production capacity and market development.
  • Quasi-equity investments (patient repayable loans)
  • Originally limited to information technology, the fund now includes development, manufacturing, marketing, or application of a technology across a variety of sectors.
  • Loans are available with flexible repayment terms for up to $1 million per borrower, with exceptions for projects that fit within the spirit of the program.
  • Active. Financing under the CIBC fund is scheduled to continue until March 2004.

















Small Business Conserva-
tion Finance Programs
















  • These are cooperative ventures between WD, VanCity Credit Union and Ecotrust Canada to provide access to patient capital for SMEs that have a positive influence on ecosystems in British Columbia and that cannot access conventional financing.
  • Quasi-equity investments (patient repayable loans)
  • These funds provide patient capital loans of up to $500 000, with exceptions for larger amounts if they accord with the spirit of the programs.












  • Financing under these programs is under review.



















Other Departments
Farm Credit Canada (FCC)
FCC Ventures




















  • FCC Ventures provides equity and quasi-equity financing to SMEs involved in value-added food manufacturing and processing, manufacturing of agricultural equipment, commercial processing, commercial-scale farming, agricultural support or ag-biotech industries.
  • Quasi-equity and equity investments
  • Investments are focussed on early- to mature-stage companies and initial investments range from $500 000 to $2.5 million.
  • Investments can include common and preferred equity, convertible debt, debt with warrant and high-yield debt.
  • These investments are generally held for five to seven years, during which time the FCC is an active investor, particularly in earlier stages.
  • Fund of $50 million established in 2002 for agricultural industry.
  • No investment has been made yet.

















Export Development Corporation (EDC)
EDC Equity



























  • EDC Equity provides medium-term equity capital to Canadian companies so that they can meet evolving challenges in global markets.

















  • Equity investments
  • Investments are restricted to a maximum investment in any one company, project or fund to the lesser of $10 million or 25 percent of share capital.
  • EDC invests in a wide range of equity structures, including investment in Canadian exporters, investment in a foreign company or project if a Canadian company is required to invest in a foreign company to win a contract or expand its export, and investment in a fund to support growth-oriented Canadian exporters or foreign companies procuring goods and services from Canada.
  • By the end of 2003, investment portfolio increased to $2.9 million.
























Cape Breton Development Corporation
Cape Breton Growth Fund (CBGF)


















































  • The Cape Breton Growth Fund (CBGF) delivers the economic adjustment fund established by the Government of Canada and the Government of Nova Scotia in the wake of the federal government's decision to downsize and privatize the Cape Breton Development Corporation (Devco).
  • The CBGF uses the fund to promote and assist, either alone or in conjunction with any person or the Government of Canada or the Government of Nova Scotia or any agency of either of those governments, the financing and development of industry on Cape Breton to provide employment outside the coal-producing industry and to broaden the island's economic base.
  • Quasi-equity and equity investments
  • Access to capital can take the form of secured or unsecured loans, interest-bearing or interest-free loans, equity or grants.
  • Projects are evaluated based on whether the assistance leverages other private or public funding, whether the project focusses on long-term sustainable growth and whether the project helps create long-term sustainable jobs.




































  • Active.
  • The CBGF is a $61-million contribution from the Government of Canada and a $12-million contribution from the Government of Nova Scotia.
  • In May 2001, Prince Colliery, the only remaining Devco mine, announced that it was closing. At that time, another $18 million was added to the CBGF for economic development and $10 million was directed to Enterprise Cape Breton Corporation to be invested in the most affected communities.

































Proposed Direct Investment Programs
ACOA — ACF Replace-
ment Fund









  • ACOA is working with ACF Equity Atlantic to develop plans for a replacement fund.





  • Quasi-equity and equity investments
  • The fund plans to attract between $30 million and $50 million in new private sector money. The new fund would have an Atlantic focus and would invest in early-stage, technology-based companies.
  • Not active. To be launched.











CED — Partnership Loan and Investment Funds













  • CED may create or re-establish loan and investment funds in partnership with financial institutions that will share a financial risk that is somewhere between conventional financial products and VC.
  • Quasi-equity investments (patient repayable financing)
  • High technology SMEs would use these funds to get financing that falls between conventional financial products and VC. The project will lend money for business projects that are too risky for venture capitalists.





  • Discussions are under way to re-establish funds in partnership with financial institutions.













FedNor — VC Pilot Project






  • To increase the availability of, and access to, equity financing for SMEs in Northern Ontario.
  • Quasi-equity and equity investments
  • Under development.






  • Proposal under review.









FirstPreviousNextLast
Date Modified: 2011-12-12

Top of page
Important Notices