$50 million in new funds will support businesses in vulnerable regions of Quebec
By CO Staff @canadaone | September 7, 2006
Vulnerable regions in Quebec will benefit from two new business funds totaling more than $50 million.
The newly created The Venture Capital Fund for Business Start-ups in the Regions and The Capital Fund for Business Succession will be made available on a regional basis. These funds were created by the new federal government to support business start-ups and business succession in Quebec regions experiencing slow economic growth.
The two capital funds will be created in partnership with Quebec's Community Futures Development Corporations (CFDCs) and Business Development Centres (BDCs), the Fondation de l'entrepreneurship, and with the support of Desjardins Venture Capital. Other venture capital firms operating in Quebec will join as well.
Venture Capital Fund for Business Start-ups in the Regions
This fund, valued at over $20 million, will targets SMEs looking for their first round of outside investments. Its goal is to help create enterprises that could not have been launched without this new source of capital sponsored by Canada Economic Development (CED).
Funds will come from CED, venture capital firms and CFDC.
Capital Fund for Business Succession
This fund is designed to maintain existing companies, jobs and decision-making centres in the regions by providing over $30 million in funds to help entrepreneurs purchase an existing enterprise.
Targeted to small and medium sized enterprises (SMEs) in Quebec regions serviced by CFDCs and BDCs, the fund will receive $8 million from CED and an equivalent amount from buyers in the form of assets. Venture capital firms will provide at least double the amounts advanced by CED and the buyer.
Desjardins Venture Capital will be a venture capital partner in both funds.
"Over the past several months, a special committee of Quebec's Network of Community Futures Development Corporations (CFDCs) has been developing unique measures to support regions that are remote from economic centres," added Gratien LeBel, Network President, who believes this initiative will have a real leverage effect on CFDCs and venture capital firms in their work with entrepreneurs.
The new measures are part of the regular programming of CED, whose mission is to promote the long-term economic development of the regions of Quebec, paying special attention to those where slow economic growth is prevalent or where opportunities for productive employment are inadequate.
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