Ottawa pledges $1.75 billion to keep startups growing at home

Ottawa has pledged $1.75 billion to help Canadian startups grow at home. The Business Development Bank of Canada, a federal body, will run both programs, announced on October 22 in Toronto.

One, Growth VCCI, is a fund-of-funds: the government backs private venture capital funds, which pool investors’ money to buy stakes in young companies. It requires at least $3 of private money for every $1 of public money, BetaKit reported. The other program sets aside $675 million for later and growth stage companies and $75 million for the earliest stage.

Growth- and later-stage companies drew 10% of Canadian venture funding in the first nine months of 2026, against 37% in 2025, CPE Media & Data Company reported.

Raquel Urtasun of Waabi, a Toronto self-driving firm, said growth rounds before revenue is earned are where too many promising companies are lost.

BetaKit reported that capital could take at least 12 to 18 months to reach fund managers.

Sources: BetaKit · Innovation, Science and Economic Development · CPE Media & Data Company