Small and medium-sized enterprises in Southern Ontario will have greater access to venture capital money, thanks to an new investment announced today by the Honourable Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario).
“This investment will give new and growing businesses the opportunity to expand and create jobs,” said Goodyear. “As Canada emerges from the global recession, providing firms with more access to venture capital money will also help lead to greater prosperity in Southern Ontario.”
“Canada needs entrepreneurs who can turn new ideas and technology into attractive products and successful companies,” said Jacques Simoneau, executive vice-president, Investments, at the Business Development Bank of Canada (BDC). “The funding that is being made available today by the Government of Canada will strengthen the BDC’s efforts to help deserving Canadian high-tech ventures in Southern Ontario in the current economy.”
FedDev Ontario will provide $50 million to the BDC, including $35 million in capital to place direct investments in early-stage firms in Southern Ontario and $15 million to invest in Ontario-based venture capital funds focused on Ontario-based opportunities.
As part of its decision-making process, the BDC will collaborate with the Ontario Venture Capital Fund, which is a partnership between the Ontario government, the BDC, the Ontario Municipal Employees Retirement System Capital Partners, RBC Capital Partners, Manulife Financial, and TD Bank Financial Group and is managed by TD Capital Private Equity Investors.
The BDC’s venture capital investments support the development of high-potential Canadian technology companies and help cultivate them into globally focused, growth-oriented companies. The BDC’s specialized equity investments cover every stage of a company’s development cycle, from pre-seed through expansion. Investments target multiple sectors: Information and Communication Technologies (IT and Telecommunications), Life Sciences (Drug Discovery and Medical Technologies), and Energy (Environment, Electronics and Materials).
The BDC is Canada’s business development bank. From more than 100 offices across the country, the BDC promotes entrepreneurship by providing highly tailored financing, venture capital and consulting services to entrepreneurs.