Canada · Toronto · Elections hub
Canada unveils a $1.75 billion plan to help startups find investors and grow at home
In brief
Industry Minister Mélanie Joly announced Canada's new Venture and Growth Capital Plan in Toronto on October 22, 2026. It combines a $1 billion Venture and Growth Capital Catalyst Initiative (Growth VCCI) with a new $750 million Early and Growth Stage Investment Strategy. The government expects the two to attract at least $3.8 billion in private capital, for more than $5.5 billion in total investment.
Where the money goes
According to Innovation, Science and Economic Development Canada, the $1 billion Growth VCCI, first announced in Budget 2025, will invest alongside private investors through three streams: a $700 million Fund-of-Funds stream meant to draw in pension funds and other institutional investors, a $200 million Life Sciences stream, and a $100 million Emerging Manager stream for newer fund managers, including those outside traditional venture capital hubs. A call for expressions of interest for the Fund-of-Funds stream is open until noon Pacific time on January 21, 2027, and the government says that stream alone should leverage at least $2.1 billion more from private investors.
The separate $750 million Early and Growth Stage Investment Strategy has a $75 million Pre-Seed and Seed stream for very young companies and a $675 million Later and Growth Stage stream to help firms scale while staying in Canada. The Business Development Bank of Canada (BDC) will manage those investments on the government's behalf. Ottawa and BDC are asking for written feedback on the later-stage design until 5 p.m. Pacific time on November 23, 2026.
Why it matters
The release links the plan to shifting trade and rising tariffs, and to a long-running worry that promising Canadian startups move abroad when they need bigger cheques. Claudio Rojas of the National Angel Capital Organization said that for the first time the strategy starts at pre-seed, comparing startups that leave to acorns that grow into oaks elsewhere.
VSH take: this is not money people can apply for directly; it flows through investment funds. For founders the practical takeaway is that more Canadian funds may have cash to invest over the next few years. If you are planning a business budget, our compound interest calculator is a handy way to see how money grows over time.
ViralScopeHub is an independent news summary site and is not affiliated with the Government of Canada or BDC. This is general information, not investment advice.
Why it matters
Deeper pools of Canadian venture capital could help more homegrown tech and life-sciences companies grow, hire and stay in Canada instead of moving abroad for funding.
People also ask
How big is Canada's new venture capital plan?
$1.75 billion in total: a $1 billion Growth VCCI and a $750 million Early and Growth Stage Investment Strategy, expected to attract at least $3.8 billion in private capital.
Can startups apply for this money directly?
Not usually. The money is invested through venture capital funds and fund managers, with BDC administering the early and growth stage strategy.
What are the key deadlines?
Fund-of-Funds expressions of interest close at noon Pacific time on January 21, 2027, and feedback on the later-stage stream is due by 5 p.m. Pacific time on November 23, 2026.
Related free tools: Compound Interest Calculator
Sources
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