Ottawa, Wednesday, March 22, 2017 – Cycle Capital Management, the most seasoned and active cleantech venture capital firm in Canada, welcomes the Government of Canada’s decision to accelerate the transition to a low-carbon economy with important clean technologies investments as part of the 2017 federal budget.
More specifically, because venture capital can foster a dynamic cleantech ecosystem in Canada, Cycle Capital welcomes the creation through Business Development Bank of Canada (BDC) of a $400M fund, the Venture Capital Catalyst Initiative, to increase late-stage venture capital available to companies for their expansion. Cycle Capital also salutes the decision to double investments in clean technologies over the next five years with $1.4B in new financing through BDC and Export Development Canada (EDC) to help clean technology firms grow and expand. These organizations will offer a combined additional $380M in equity financing to support clean technology firms looking to scale, $570M in working capital to support established cleantech companies and $450M in additional project finance for high-capital-intensive early stage clean technology companies. The 2017 federal budget also announces the recapitalization of Sustainable Development Technology Canada’s (SDTC) SD Tech Fund with $400M in new investments over 5 years.
Venture capital (VC) is one of the key component of clean technology development and Canada has been lagging behind its competitors on this front over the last decade. These investments will play an important role in reducing Canada’s greenhouse gas emissions and also establishing a low-carbon economy in Canada by fostering innovation and growth in cleantech sector, as stated in the Pan-Canadian Framework on Clean Growth and Climate Change. Cycle Capital’s current and future portfolio companies will directly benefit from these investments.
“With these substantial investments, the Government of Canada shows vision and demonstrates its true willingness to build a greener economy in Canada by accelerating the development of cleantech innovations and the creation of competitive Canadian companies able to play a role on the global scene,” says Andrée-Lise Méthot, Founder and Managing Partner at Cycle Capital Management.
$20B over 11 years will also be invested to support public transit projects and $22B over 11 years to support green infrastructures. “Investments in clean technologies and in public transit are all example of how this budget will foster a cleantech innovation economy and accelerate Canada’s transition to a low-carbon economy,” adds Andrée-Lise Méthot.
The study titled Forging a Cleaner and More Innovative Economy in Canada released in December by Cycle Capital and SDTC showed that whereas Canada was leading when it comes to research, Canada failed to compete in commercializing that research into market-ready technologies. It also revealed that Canada lagged behind the United States on a per capita basis in both venture capital and debt financing, both critical components in helping companies innovate, scale up their operations and commercialize their technologies.
To access the full study please visit http://www.cyclecapital.com/wp-content/uploads/2016/12/CCM-SDTC_Forging-a-cleaner-economy_FINAL.pdf.
About Cycle Capital Management
Cycle Capital Management is the most active cleantech VC in Canada. Cycle Capital invests in companies developing and commercializing clean technologies and striving to reduce greenhouse gas emissions, optimizing resource use, and improving process efficiency throughout a product’s life cycle.
With assets under management of $231M, Cycle Capital invests in Quebec and North America. Cycle Capital Management, based in Montreal with an office in Toronto and points of presence in New York, Seattle and Qingdao in China, regroups seasoned investment professionals, strategic advisors and industrial partners with in-depth knowledge of the sector. Cycle Capital Management has a special relationship with its strategic partners, notably Brookfield Renewable Energy, Rio Tinto Alcan, Cascades, Group M3, Lonza, Gaz Métro, Systemex Énergies, Aluminerie Alouette, and Hydro-Québec. For more information on Cycle Capital Management visit: cyclecapital.com.
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