Canadian Venture Capital & Private Equity Association (CVCA)

It has been a rollercoaster last few days, going from banner announcements on Friday to a surprise FinMin resignation this morning. Today's greatest takeaway? Uncertainty. Canadian businesses face the challenging task of planning for a 2025 with limited information and a turbulent political landscape. But… past the headlines and into the nitty gritty of the Fall Economic Statement… there are fruitful measures portending a vision of public-private partnerships that can deliver solid wins for our economic future. I was especially impressed with the FES emphasizing the importance of a strong and dynamic domestic private capital industry to nurture Canada’s most innovative (and productive!) businesses. This is a good narrative pivot – although the road to implementation is… bumpy. 🎢 With a caveat that details remain scarce, the most notable measures for private capital and business investment include: ✔️ A commitment to provide more attractive terms for Canada’s pension plans and institutional investors to invest more domestically, including through two commitments of $1B each for recapitalization of the Venture Capital Catalyst Initiative (VCCI) and a fund to support mid-cap growth companies via qualified fund managers. This could be transformational for capital flow in Canada. ✔️ A proposed capital gains tax rollover provision allowing deferral of taxation when proceeds of a disposition are reinvested into eligible small business shares, relaxing eligibility conditions to expand reach. ✔️ Updates to the Scientific Research and Experimental Development (SR&ED) program, expanding both eligibility requirements and incentives. This is in line with CVCA’s recommendations encouraging the government to modernize SR&ED. Moreover, extending SR&ED incentives to public companies (post-IPO) is an important development that will remove an earlier disincentive to public listings. ✔️ Various announcements on Artificial Intelligence that expand on the government’s AI advantage strategy, adding detail on co-investments in infrastructure development, public-private incentives for data centre buildup, and access to compute. ✔️ Extending the Accelerated Investment Incentive also reinstates immediate expensing for certain capital investments to promote business investment. Uncertainty and business investment rarely mix, but in the stakeholders lockup today I perceived a strong foundation for public-private collaboration with an aim to drive Canada’s economic prosperity. Much more work ahead! 🏢 Canadian Venture Capital & Private Equity Association (CVCA)

Nominations are Open!  The 2025 Canadian Women in Private Capital Awards and the 2025 CVCA Awards Program celebrate leadership, innovation, and impact in the private capital community. Nomination Deadlines:  * Canadian Women in Private Capital Awards: January 17, 2025  * CVCA Awards Program: February 7, 2025 Take the opportunity to elevate your firm’s and individual achievements. Submit your nominations now: https://lnkd.in/gNUzr3uc

Today was an important day for our industry! Minister Chrystia Freeland announced a significant commitment of CAD $1 billion to recapitalize the Venture Capital Catalyst Initiative (VCCI). This will provide a capital boost designed to encourage Canadian pensions to direct more investment into Canadian startups and scaleups. Additionally, the government has committed a further CAD $1 billion to support mid-cap growth companies, with details on this initiative forthcoming. In CVCA’s discussions with the federal government, we noted a shared recognition of the vital role that domestic capital plays in driving Canada’s economy. This capital is essential for scaling businesses and anchoring transformative companies here at home. This announcement is a significant step toward creating wealth that will remain within the ecosystem and strengthen Canada’s private capital markets while future-proofing our economy. By leveraging this alignment between public and private capital, the opportunities for innovation and economic transformation in Canada are immense. Canadian pensions, globally renowned for their disciplined investment strategies and strong performance, are a cornerstone of this initiative. We are confident that Canada’s investment opportunities will meet the high standards required to align with their proven track record. At the same time, preserving the autonomy of pension decision-making remains essential to their continued success.

Today, the Government of Canada announced a significant commitment of CAD $1 billion to recapitalize the Venture Capital Catalyst Initiative (VCCI). This will provide a capital boost designed to encourage Canadian pensions to direct more investment into Canadian startups and scaleups. Additionally, the government has committed a further CAD $1 billion to support mid-cap growth companies, with details on this initiative forthcoming. This marks an important recognition of the need for domestic sources of capital to work together in fueling the growth of Canada’s private markets, which are critical for supporting startups, scaling businesses, and anchoring transformative companies in Canada. We thank Minister Chrystia Freeland and the federal government for their foresight on this highly strategic investment that, alongside Canada’s institutional investors, has the power to transform our standing in the knowledge economy. Canadian pensions, globally renowned for their disciplined investment strategies and strong performance, are a cornerstone of this initiative. We are confident that Canada’s investment opportunities will meet the high standards required to align with their proven track record. At the same time, preserving the autonomy of pension decision-making remains essential to their continued success. We also welcome the government’s announcement to modernize the SR&ED program to more accurately reflect the dynamism in today’s innovation ecosystem. SR&ED is a transformative tool supporting Canadian innovators and today’s announcements take it further in its support for commercialization. Together, these initiatives are positive steps toward fostering a stronger, more innovative private capital market in Canada. CVCA looks forward to supporting the framework development to ensure these investments deliver maximum impact for Canadian businesses and investors.

We closed the year with our last 50th Anniversary networking event. A big thank you to Deloitte for hosting us and for the support of Fasken SS&C Technologies & Stifel Financial Corp. It was a packed room!! To all the members who attended, I hope your made meaningful connections and thank you for attending. Happy Holidays and see you in 2025! 🎄

Board members of the Canadian Venture Capital & Private Equity Association (CVCA) and representatives from Canada’s venture capital and private equity community, joined us to open the market to celebrate the Association's 50th anniversary. This milestone marks 50 years of transformative contributions by venture capital and private equity to Canada’s economy. From powering innovation to supporting businesses through every stage of growth, these industries have been instrumental in building a globally competitive entrepreneurial ecosystem. The Canadian Venture Capital & Private Equity Association supports the investors behind thousands of jobs, innovative technologies, and strengthened local economies across Canada. CVCA advocates for access to capital, talent, and competitive tax policies, while fostering partnerships and collaboration across industries. Our industry-leading data provides the most reliable insight into the Canadian market, and our essential resources help our members' organizations thrive.

Fasken is a proud partner of the Canadian Venture Capital & Private Equity Association (CVCA) Toronto Holiday Social – the final stop of the CVCA’s 50th Anniversary Celebration Series on December 12. Presented by Deloitte, this festive event is a fantastic opportunity for the CVCA members to reconnect, celebrate, and forge new partnerships. Our very own Grant McGlaughlin, Claire Gowdy, Will Shaw and Kate Grant will be in attendance, ready to connect with professionals dedicated to driving innovation and economic growth in Canada. Discover how our Private Equity (https://direc.to/m6VN) and Emerging Technology and Venture Capital (https://direc.to/m6VK) groups can provide comprehensive, strategic legal advice and representation at every stage. #CVCA #Fasken #PrivateEquity #EmergingTechnology #VentureCapital

Navigating acquisitions can be challenging, especially when speed and preserving equity are crucial. In our latest article on CVCA Central, CIBC Innovation's Paul McKinlay, CFA, CAIA and Amy Olah share insights into how venture debt can enable high-growth companies to fund acquisitions without dilution. Learn how this financing option works and why trusted partnerships can make all the difference: https://lnkd.in/gmTtyYEM

Equip the next generation of private capital professionals with the expertise to thrive. The Canadian Private Capital Investment School (CPCIS) prepares junior and aspiring fund managers to tackle modern industry challenges through hands-on learning, expert-led discussions, and an applied capstone project.  As a CVCA member, secure a 25% discount for your team. Seats are limited—apply by March 3, 2025. Discover more and register here: https://lnkd.in/gxfWxtdt Delivered in partnership with The Ivey Academy at Ivey Business School.