Raising Equity Capital

The Venture Capital Programs legislated under the Small Business Venture Capital Act operate under limited tax credit budgets. These budgets restrict the total amount of equity capital that registered venture capital corporations (VCCs) are allowed to raise in each calendar year.

Upon registration, the VCC automatically receives an equity authorization for $50,000. The VCC can request to raise more investment, by completing and submitting an Additional Equity Application (PDF, 617 KB).

Equity authorizations are not a guarantee that investors will receive tax credits. Tax credit budgets are limited and tax credits are available on a first come, first serve basis.

The VCC's equity authorization ends on its expiry date, or the day the VCC's assigned tax credit budget sells out, whichever is earlier.

Equity authorizations may be suspended at any time with limited or no notice.

VCCs should claim tax credits through the electronic Tax Credit Application (eTCA) as soon as investment has been raised, and share purchase reports and tax credit application requirements have been met.

VCCs can apply to raise additional equity capital each tax budget year using the Additional Equity Application (PDF, 617 KB).

When raising equity capital the VCC must ensure that each individual investor completes and signs a Share Purchase Report (PDF, 644 KB).