In 2018 Budget, Québec government said it will provide up to $61.5 million to support Teralys Capital’s candidacy for the federal government’s Venture Capital Catalyst Initiative (VCCI) to maximize Québec’s share from VCCI.
The Québec government’s contribution is based on the matching funds method proposed by the federal government under which public sector contributions amount to no more than 30.7% of total capitalization and, where a provincial government is participating, the public sector contribution is split equally between governments.
Teralys Capital proposes to create a fund of funds with a target size of $400 million to fund specialized venture capital funds, particularly in the information and communication technologies, life sciences and clean technologies sectors.
The funding for the new fund-of-funds will breakdown as follows:
Québec government: $61.5 million
Federal government/BDC Capital: $61.5 million
Private partners: $277 million
Funds selected for VCCI is expected to be announced in 2018. Details of Québec’s participation in the new fund of funds managed by Teralys Capital will be made public by the Minister of the Economy, Science and Innovation and the Minister of Finance when the results of the Venture Capital Catalyst Initiative competition will be announced.
Montreal based Teralys Capital currently manages two fund-of-funds.
Teralys Capital Fund of Funds was created in 2009 jointly by Caisse de dépôt et placement du Québec, Fonds de solidarité FTQ and the Québec government. Québec government invested $200 million in the Fund out of a total of $600 million. As of September 30, 2017, Teralys Capital Fund of Funds has entirely allocated its capital to 17 venture capital and private investment funds.
Teralys Capital Innovation Fund was created in 2014 as part of the federal government’s Venture Capital Action Plan (VCAP), the predecessor of VCCI. Québec government invested $62.5 million out of a total of $375 million. As of September 30, 2017, Teralys Capital Innovation Fund has allocated 90% of its capital to 15 venture capital and private investment funds.
photo credit: Teralys Capital