Small businesses in Southern Ontario will have better access to venture capital.
A new investment announced today by Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), will provide $50m to the Business Development Bank of Canada (BDC), including $35m in capital to place direct investments in early-stage firms in Southern Ontario and $15 million to invest in Ontario-based venture capital funds focused on local opportunities.
The initiative is part of the Canada’s Economic Action Plan, which provides short-term stimulus to communities hard-hit by the recession while delivering long-term funding designed to promote economic growth, job creation and innovation. Budget 2009 provided $1 billion over five years for a new economic development agency for Southern Ontario.
The BDC, the Canadian business development bank with more than 100 offices across the country, will collaborate with the Ontario Venture Capital Fund and will continue to support the development of high-potential technology companies. The BDC’s investments cover every stage of a company’s development cycle, from pre-seed through expansion. and target different sectors such as Information and Communication Technologies, Life Sciences, and Energy.