Appearing in the 2022 provincial budget, the Manitoba Government officially announced the creation of a $50 million venture capital fund (VCF) on Apr. 29.
It was created after a review of venture capital programs across the country, and the Economic Development Board recommended the development of an independent, professionally managed fund. According to the government, the VCF will partner with “private investment capital to invest government’s seed capital in Manitoba-focused investment funds.”
“Manitoba’s business leaders are the engine of our economy, the creators of jobs and prosperity for so many Manitobans,” said Premier Heather Stefanson. “They have told us access to capital is critical for the development and expansion of Manitoba businesses. As committed to in the speech from the throne, this new fund will lead to the creation of entrepreneur-led businesses that will fuel provincewide economic growth to support the economies in rural, urban and Northern Manitoba.”
As well, the Small Business Venture Capital Tax Credit will be made permanent. It provides a non-refundable Manitoba tax credit of up to 45 per cent to individuals and corporations who acquire equity capital in eligible Manitoba ventures.
“Today’s announcement begins the process to level the playing field and leverage the entrepreneurial spirit in Manitoba to grow our economy for better employment and to pay for better public services,” said Bram Strain, president and CEO, Business Council of Manitoba. “Further, the expansion of the small business tax credit to include venture capital funds allows Manitobans to invest in our province and share in the growth and prosperity.”
The Manitoba Technology Accelerator (MTA) will manage the funding until the VCF becomes operational in late 2022. The MTA will develop a steering committee with industry, government and community representation to manage the fund and set up its initial governance.
“This announcement is very exciting and marks the end of the decade’s long venture capital drought in Manitoba,” said Marshall Ring, CEO, MTA. “Building a successful business is challenging and is often described as ‘climbing the ladder of success.’ This new venture capital fund will restore some of the crucial ‘capital’ rungs of that ladder that have been missing in Manitoba.”
