Venture fund Relay Ventures III has been tapped to receive a $15 million investment from the federal government under its plan to help revive the Canadian venture capital industry.

The Department of Finance announced the investment Mondya under the Venture Capital Action Plan (VCAP), which was launched in 2013 in a bid to catalyze investment in the Canadian VC industry. Of the $400 million earmarked for the plan, about $50 million is to be used to directly invest in high-performing venture funds.

Relay Ventures III, which focuses on investment opportunities in the information and communication technologies sector, was chosen on the recommendation of the expert panel that was established to provide advice on the VCAP, including the selection of VC funds to receive direct investments.

“The investment in Relay Ventures III is an important step in implementing our government’s Venture Capital Action Plan to help create a vibrant, private sector-led venture capital system in Canada leading to jobs, innovation and economic growth,” said federal Finance Minister Joe Oliver.