Great news for Canadian start-ups – Government of Canada announced major funding for BDC today:
The Honourable Tony Clement, Minister of Industry, today announced that the Government of Canada is providing $450 million to the Business Development Bank of Canada (BDC) in support of small and medium-sized enterprises and innovative firms.
The funding will include $100 million to establish the Operating Line of Credit Guarantee and $350 million over three years to help drive venture capital investment in promising Canadian technology businesses.
The $350 million in funding for BDC‘s venture capital activities will allow it to make additional direct investments of $260 million over three years in Canadian businesses already in the BDC portfolio, as well as investments in new seed technology companies and later-stage technology companies. It will also allow BDC to commit $90 million over three years to private, independent Canadian venture capital funds. This funding is in addition to the $75 million in venture capital funds allocated in the Government of Canada’s Budget 2008, which is being used to support the creation of a privately run venture capital fund.
Any thoughts on this ?