Canada has opened applications for a C$700 million fund-of-funds program, the first live application process in a C$1.75 billion federal plan to expand financing for startups and growth companies.
Industry Minister Mélanie Joly announced the plan Oct. 22. Its C$1 billion Venture and Growth Capital Catalyst Initiative begins in fiscal 2026–27. Ottawa allocated C$700 million to the fund-of-funds stream, C$200 million to Canadian life sciences venture fund managers and C$100 million to emerging managers, including those in strategic sectors or outside established venture hubs.
The current call is for qualified fund-of-funds managers. Applicants must seek to raise a fund of at least C$150 million; selected managers must raise at least C$3 in private capital for each C$1 in public capital. Applications close at 3 p.m. ET (noon Pacific time) Jan. 21, 2027, according to Innovation, Science and Economic Development Canada (ISED).
The other program is a C$750 million Early and Growth Stage Investment Strategy. It assigns C$75 million to pre-seed and seed investments, with the remaining C$675 million for later- and growth-stage investment. The Business Development Bank of Canada will manage investments in Canadian funds on the government’s behalf. The larger stream’s design is still being developed.
The government estimates the C$700 million stream will draw at least C$2.1 billion in additional private investment. Across both programs, it projects at least C$3.8 billion in private capital and total investment above C$5.5 billion. These are projections, not funds already raised or invested. ISED cites global trade uncertainty as a factor affecting investors and companies and interrupting capital flows to startups.
Canadian venture activity was mixed in the first half of 2026. The Canadian Venture Capital and Private Equity Association reported C$2.69 billion invested across 250 deals, a 17% rise in value from a year earlier even as the number of deals fell 8.8%. Growth-stage financing reached C$127 million across three deals. CVCA data show foreign investors participated in 56% of later-stage rounds in the first half of 2026, compared with 30% a year earlier.
Budget 2025’s impact assessment projected that men would receive a disproportionate share of benefits, reflecting their greater representation among venture fund managers and entrepreneurs who receive investment. It also anticipated indirect benefits for workers and investors, and possible gains for middle- and higher-income people.
ISED and the Business Development Bank of Canada are accepting feedback on the C$675 million stream until 8 p.m. ET (5 p.m. Pacific time) Nov. 23. The fund-of-funds application deadline follows on Jan. 21, 2027.
