Launch of the Concours des fonds d’amorçage du Québec
Québec City, January 27, 2021 – The Government of Québec, the Fonds de solidarité FTQ, Teralys Capital in collaboration with Caisse de dépôt et placement du Québec, and Fondaction are launching the Concours des fonds d’amorçage du Québec [Québec seed fund competition] today. The venture capital investment initiative is worth $100 million, of which $50 million comes from the government.
The purpose of this partnership is to foster the creation of investment funds in strategic, innovative sectors and to encourage the emergence of new Québec fund managers to support the development of a strong private venture capital industry.
The goal is to create, over the next three years, a minimum of three seed funds in sectors with strong growth potential and in which all the partners will invest. The government’s contribution will be made through its agent Investissement Québec.
Once a year, a selection committee consisting of representatives from each financial partner will decide the winning investment fund(s) based on specific criteria such as the managers’ investment strategy, strengths, experience and expertise. The general partner’s commitment and ability to attract private capital and establish relationships with key players in the funding chain will also be considered.
Quotes:
“The investment funds spawned by this competition will support a new generation of entrepreneurs who will create quality jobs and long-term wealth. This initiative is in line with our economic development approach, which prioritizes, among other things, filling the gaps in the capital chain of our entrepreneurs. I encourage private sector investors to submit their proposals and play a direct role in the success of future Québec flagship companies.”
Pierre Fitzgibbon, Minister of the Economy and Innovation
“The Fonds de solidarité FTQ is an important player in the Québec venture capital industry and an early partner of the Québec government in supporting business start-up initiatives. Through our investment in the Concours des fonds d’amorçage du Québec, we are renewing our support for emerging fund managers and entrepreneurs, who are helping to build a stronger Québec economy.”
Gaétan Morin, President and CEO, Fonds de solidarité FTQ
“Access to value-added capital is essential for the success of Québec technological entrepreneurship, which is central to Teralys Capital’s mission. We are proud to be associated with this initiative through our program for Québec seed funds. By
leveraging its expertise as ecosystem builders and supporting these emerging managers in implementing best practices, Teralys Capital is delivering on its commitment to stimulate Québec’s venture capital industry.”
Jacques Bernier, senior partner, Teralys Capital
“Fondaction works with more than 50 partners and specialized investment funds. We know that seed fund quality and diversity is crucial to the health of this funding ecosystem. We are convinced that this competition will bring out the expertise and innovation capabilities of Québec investors and that it will help drive our economy.”
Geneviève Morin, President and CEO, Fondaction
“As an association representing Québec’s investment capital industry, Réseau Capital welcomes this transformative initiative, in both form and substance. This partnership between Québec’s industry leaders and the government will increase the supply of and expertise in seed stage venture capital and concretely help back start-ups in key sectors of our economy.”
Guillaume Caudron, President and CEO, Réseau Capital
Highlights:
- Applicants will have 60 days from the competition’s official launch date to submit a formal and complete application.
- Proposals must demonstrate their ability to create innovative and sustainable investment funds.
- They should be based on investment strategies at the seed stage and target companies in strategic sectors insufficiently covered by the current funding chain.
- The new funds will be managed as private limited partnerships, in accordance with best practices in the venture capital industry.
Related link:
To find out about the conditions of the Concours des fonds d’amorçage du Québec, visit https://www.economie.gouv.qc.ca/bibliotheques/appels-projets/concours-des-fonds-damorcage-du-quebec.
Ministère de l’Économie et de l’Innovation sur les réseaux sociaux:
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