The Quebec venture capital industry will provide seed funding to current and aspiring entrepreneurs.
QUEBEC, The government of Quebec, the Fonds de solidarité FTQ, Teralys Capital in collaboration with the Caisse de dépôt et placement du Québec, and Fondaction are today launching the Seed Fund Competition of Quebec. This venture capital investment initiative totals $ 100 million, of which $ 50 million comes from the government.
This partnership aims to promote the creation of investment funds in strategic and innovative sectors as well as to encourage the emergence of new Quebec fund managers in order to support the development of a private and efficient venture capital industry.
Over the next three years, it is planned to create, in sectors with high growth potential, a minimum of three seed funds in which all partners will invest. The government’s contribution will be made through Investissement Québec, which will act as agent.
A selection committee comprising representatives of each of the financial partners will annually determine the winning investment fund (s) according to specific criteria, such as investment strategies, strengths, experience and expertise of managers. The commitment of the general partner as well as its ability to attract private capital and establish links with the main players in the financing chain will also be considered.
“The investment funds resulting from this competition will help support a new generation of entrepreneurs, who will create quality jobs and long-term wealth. This initiative is consistent with our vision of economic development, one of whose priorities is to fill the gaps in the capital chain of our entrepreneurs. I encourage investors from the private sector to submit their proposals to us and to contribute directly to the success of future Quebec flagships. ” Pierre Fitzgibbon , Minister of the Economy and Innovation
Candidates will have a period of 60 days from the official launch date of the competition to submit a formal and complete application. Proposals submitted within the framework of the competition must in particular demonstrate their ability to create innovative and sustainable investment funds.
These should be based on investment strategies at the seed stage and target companies in strategic sectors insufficiently covered by the current financing chain. The new funds will be managed as private limited partnerships, in accordance with best practices in the venture capital industry.