Governments of Canada & Quebec Invest in New Venture Capital Fund

Earlier this week, Finance Minister Joe Oliver announced the Government of Canada’s investment in Teralys Capital Innovation Fund, a private sector-led fund of funds and a key element of the Government of Canada’s Venture Capital Action Plan (VCAP). Minister Oliver was joined at the event by Quebec Finance Minister Carlos Leitão, as well as lead investors in the Fund.

The Fund, the second fund of funds established under the VCAP, had its initial closing with $279 million in commitments—$186 million from institutional and corporate investors, alongside $46.5 million from each of the Governments of Canada and Quebec.

Teralys Capital Innovation Fund has an emphasis on investment opportunities in the life sciences sector, and will invest primarily in Canada-focused early-stage and mid-stage venture capital funds, and directly in companies across Canada.

Teralys Capital has been selected by lead investors to act as the general partner for the Fund, following a fair and competitive selection process led by the Venture Capital Expert Panel. Investment decisions will be made by Teralys Capital on market-based principles in order to maximize returns.

The Governments of Canada and Quebec have agreed to make a combined capital commitment of $1 for every $2 committed by private sector investors to the new Fund, up to a maximum of $62.5 million each. The Fund will seek additional investors to reach its target size and anticipates holding a second closing in 2015.

Source: Department of Finance Canada