A new $825M Fund for Venture Capital to be put in place by Quebec Government

19Mar09

I believe this is great news for Quebec, for Canada and the whole Venture Capital Community. Earlier today, the Quebec Finance Minister Monique Jérôme-Forget presented here budget in which she outlines the $15-billion stimulus package. Budget 2009-2010.

 

We find in this Budget many changes and numerous proposed solutions for critical sectors of the economy. But the two initiatives that captured my attention are 1) the creation of the new $825M Venture Capital Fund (or will it be a Fund of Fund?) and 2) a $500Memergency Fund for businesses. Of course we have yet to see the details and inter-workings of such a Fund, but I would guess that these monies will provide some level of continuity to Venture Capital Fund managers and potentially direct investments as well. This is great news as long as the capital being put at work is done through proper management of such funds.

 

Over the last few years, The Solidarity Fund, the FondAction CSN, Desjardins Capital and the Caisse de Dépot have been hard at work figuring out ways to help entrepreneurs and business owners out. They have played a crucial/leading role in support of the Canadian Private Equity & Venture Capital industry.  Their efforts are now joined by a clear and strong commitment to Venture Capital by the Quebec Government. This news comes a day after the Ontario Budget and announcement of their own co-investment fund in the amount of $250M.

 

I look forward to soon be witnessing a revived Canadian Venture Capital Ecosystem through  (mostly) an indirect involvement by our governments into businesses through their direct commitment as limited partners into leading private venture capital fund managers across Canada.

 

Here are a few key highlights of 2009-2010 Quebec budget (as outlined by the Montreal Gazette):

 

– $15-billion economic stimulus package;

 

– $3.9-billion deficit budget;

 

– Quebec Stock Savings Plan, returns, tax deductions for stock market investments;

 

– Quebec sales tax will rise to 8.5 per cent in 2011;

 

– Indexing of fees, from birth certificates to driver’s licences, in 2011;

 

– $500 million more for job re-training;

 

– $1.5-billion more for health, $490 million more for education;

 

– A $500-million emergency fund, for businesses;

 

– A $825-million venture-capital fund, for businesses;

 

– $2,000 increase in tax credit for child-care expenses;

 

– Program to eliminate elder abuse;

 

– $1.6-billion more for Generations Fund over two years, to offset Quebec’s growing debt;

 

– Crack down on “aggressive tax planning” to curb tax evasion;

 

– 3,000 more low-cost housing units.

 

Check out Flow Ventures post with more info and linsks (link to )

 



5 Responses to “A new $825M Fund for Venture Capital to be put in place by Quebec Government”

  1. Great to see they will be a fund of funds, rather than having the government invest directly in the companies.

  2. Clearly, I’m due for a more recent post!


  1. 1 CVCA - Capital Rants » Blog Archive » A new $825M Fund for Venture Capital to be put in place by Quebec Government
  2. 2 Over $1 billion in stimulus for Canadian startups : : FLOW Ventures
  3. 3 More on the $1.35B initiatives from Quebec for the Venture Capital industry | iNovia Capital

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