Ahead of next week’s budget, the federal government has closed another investment as part of its effort to kickstart the venture capital market, Finance Minister Joe Oliver announced Wednesday.
“With the establishment of HarbourVest Canada Growth Fund, our government continues to help ensure that Canada’s venture capital sector has a bright future. By working together, we can build on previous investments to further improve access to venture capital financing, contributing to a stronger, more innovative economy,” said Oliver.
The fund closed an initial funding of almost $200 million, comprised of $131.5 million from a handful of corporate and institutional investors and $65.7 million from the government.
Each of the Big Five banks has invested in the fund, along with the Canada Pension Plan Investment Board (CPPIB), HarbourVest Global Private Equity Ltd., Knight Therapeutics Inc., and Laborers’ Pension Fund of Western Canada.
Boston-based HarbourVest Partners will act as the general partner for the fund, which will focus on the information and communication technology sector; and will invest primarily in early-stage and mid-stage venture funds, along with making direct investments.
The closing represents the last of four private sector-led funds of funds that the government sought to establish under its $400 million plan to catalyze venture investing that was unveiled in the budget several years ago.