TORONTO - The federal government will put $1.75 billion into Canada’s venture capital system under a plan unveiled by Industry Minister Mélanie Joly, money the government says is expected to draw at least $3.8 billion in private capital and push total investment in the sector past $5.5 billion.
The centrepiece is the Venture and Growth Capital Catalyst Initiative, called Growth VCCI, through which Ottawa will provide $1 billion on a cash basis starting in 2026-27. The government says it will invest alongside the private sector through three streams: a $700 million fund-of-funds stream, a $200 million life sciences stream and a $100 million emerging manager stream.
The fund-of-funds stream carries the immediate deadline. Innovation, Science and Economic Development Canada is now accepting expressions of interest from qualified fund-of-funds managers, which can include private capital fund managers and pension funds. Applications close at noon Pacific time on January 21, 2027. The government says the stream is designed to leverage at least another $2.1 billion from private investors such as pension funds and other institutional investors, with features such as risk sharing and a chance to invest at scale in funds and companies across the country.
The life sciences stream will back Canadian venture capital fund managers that support life sciences companies to innovate and grow. The emerging manager stream will support newer Canadian fund managers, including those focused on strategic sectors and those based outside traditional venture capital hubs.
“Canada has the talent and ambition to build world-leading companies here at home,” Joly said in the announcement. Isabelle Hudon, president and chief executive officer of the Business Development Bank of Canada, added: “Canada doesn’t lack promising companies.”
Alongside Growth VCCI, Joly unveiled Canada’s Early and Growth Stage Investment Strategy, a $750 million plan whose investments in Canadian funds will be administered by the Business Development Bank of Canada. It has two streams: $75 million for pre-seed and seed stage companies, to help them progress to Series A and beyond, and $675 million for later and growth stage firms, to help them scale and remain anchored in Canada. The government is also seeking stakeholder views on the design of the later and growth stage stream, with written feedback accepted until 5 p.m. Pacific time on November 23, 2026.
For founders in Surrey and across British Columbia, the plan works indirectly: the federal money flows to fund managers, who then invest in companies. B.C. technology and life sciences firms, including South Asian founders building companies in Surrey, would reach this capital through venture funds rather than by applying to Ottawa directly. The life sciences stream targets a sector with a significant B.C. presence, and the emerging manager stream is meant to spread fund management beyond the traditional hubs.
The announcement lands as Ottawa argues that Canadian startups too often grow elsewhere. Claudio Rojas, chief executive officer of the National Angel Capital Organization, said the strategy is the first in Canada to start at the pre-seed stage, so that companies whose first investors are Canadian can more readily take root here. The government says the goal is more Canadian companies scaling at home, creating jobs and competing globally.
Source: Innovation, Science and Economic Development Canada news release, October 22, 2026
