An Update on Canada's Venture Capital Action Plan: The Selection Process

Further progress has been made with respect to the establishment of a new venture capital fund, initially discussed in the April 9, 2013 post entitled Boosting Canada's Knowledge Economy: Will New Government Funding Be Enough?.

On May 3, 2013, the Honourable Jim Flaherty, Minister of Finance, announced a next step in implementing the Harper government's Venture Capital Action Plan (the "VCAP"), as part of its 2012 and 2013 Economic Action Plan. In January 2013, Prime Minister Stephen Harper announced the VCAP, which includes resources for establishing and recapitalizing large, private sector-led funds of funds. A fund of funds portfolio is made up of investment in a number of venture capital funds.¹ The important next step in implementing the VCAP involves the launching of a selection process for General Partners and Managers to manage the fund of funds and a process for selecting high-performing venture capital funds.