Ontario government commits $100 million to new tech fund of funds
The Government of Ontario is committing $100 million towards a new fund of funds focused on supporting high-potential tech companies in the province. The new Venture Ontario Fund will be tasked with dispersing the $100 million to venture capital funds focused on “high-growth sectors where Ontario has a competitive advantage,” such as life sciences, medical devices, clean technology, information technology, and artificial intelligence. “A dynamic and vibrant venture capital market will be essential for Ontario to stay ahead.”The fund will be overseen by the Ontario Capital Growth Corporation (OCGC), the province’s venture capital agency that also manages the government’s last fund of funds (the Ontario Venture Capital Fund), the Ontario Emerging Technologies Fund (OETF), and other venture capital commitments. The federal government’s commitment to the fund came through the Venture Capital Action Plan (VCAP), the predecessor to Venture Capital Catalyst Initiative (VCCI). The federal programs, focused on fund of funds investing, have helped spur venture capital fund investments across the country, attracting matching capital from provincial governments.