Celebrating 50 Years of Impact and Innovation in Canadian Private Capital

In 2024, the Canadian Venture Capital and Private Equity Association (CVCA) proudly celebrates its 50th anniversary, marking half a century of pivotal influence in shaping Canada’s economic, growth, and innovation landscapes.

Since its inception in 1974, the CVCA has been crucial in fostering growth and innovation in Canada by representing and advocating for the venture capital and private equity industry. These industries have propelled the inception and expansion of groundbreaking Canadian companies across various sectors.

Venture capital and private equity are vital instruments in Canada’s economic engine, driving innovation, creating jobs, and future-proofing the economy by transforming cutting-edge ideas into tangible solutions and thriving businesses. These investments not only contribute significantly to our economic resilience but also create thousands of jobs and secure the retirement ambitions of millions of Canadians by ensuring robust and diversified pension fund investments.

As we look forward to the next 50 years, the CVCA continues to stand at the forefront of a rapidly evolving industry landscape, committed to amplifying its impact and reach. The CVCA aims to continue broadening its influence and resources, supporting the growth of Canadian businesses and, consequently, the national economy, ensuring that the venture capital and private equity sectors remain vibrant and integral to Canada’s future economic prosperity.

Decade by Decade: Building a Legacy

The Canadian venture capital sector began its formative journey in the 1960s and 1970s, marked by slow yet meaningful growth. This period laid the essential groundwork for a structured VC industry in Canada, characterized by the initial formation of foundational investment strategies.
The Canadian VC industry began taking shape in the latter half of the 20th century, notably influenced by similar developments in the United States. Initially, the industry was characterized by a few pioneering efforts, often triggered by the establishment of VC firms in the US and their subsequent interest in Canadian market. Over time, these initial investments helped to establish a more structured VC industry in Canada, laying the groundwork for a growing investment ecosystem.

The Canada Development Corporation was established in Toronto, significantly backed by the Government of Canada. This entity played a pivotal role in nurturing Canadian companies by providing vital capital and support until its dissolution in 1986, demonstrating the early governmental support crucial for the industry’s growth.
The CDC was not a typical crown corporation; it aimed to generate profits and was set to eventually have no more than 10% government ownership. Its creation was influenced by Walter Gordon’s efforts through the Royal Commission on Canada’s Economic Prospects and the Watkins Report to address foreign ownership and stimulate Canadian ownership in natural resources and industry. The corporation was notable for early significant acquisitions like Connaught Laboratories, and major investments in petroleum, mines, and petrochemicals including assets like Polymer Corporation. By 1982, the Canadian government held a 49% stake. It was dismantled in 1986 as part of broader privatization efforts.

In response to restrictive government policies affecting venture capital investments, Gerald Sutton spearheaded the formation of the Association of Canadian Venture Capital Companies (ACVCC). This association aimed to unify the voices of venture capitalists to lobby for better investment protection and fair taxation, establishing a foundation for impactful advocacy.
During its formation, the ACVCC set forth several objectives to guide its mission: to have meaningful input into new legislation, effect changes in tax legislation, and elevate its profile as the central authority on venture capital matters. These goals aimed to enhance the influence and effectiveness of the association within the broader financial and legislative landscapes of Canada.
About Gerald Sutton, CVCA’s Founding President: Gerald Sutton arrived in Canada from England in 1941 and settled in Chatham, Ont. Two years later he joined the RCAF at the age of 17 and would be commissioned as a pilot. Following his service he enrolled in the Commerce program Queen’s University, graduating in 1948. A year later he graduated from the Master of Commerce program. Working in the head office of the Bank of Montreal he would become Assistant Economic Adviser but left in 1958 to be Director of Research at Nesbitt, Thompson And Company Limited, now BMO Nesbitt Burns. In 1961 he organized Canada’s first venture capital company, Canadian Enterprise Development Corporation Limited (CED). He was appointed General Manager in 1964 and subsequently President of CED. Throughout his career, Sutton was also a pioneer in organizing and supporting organizations such as the Association of Canadian Venture Capital Companies (ACVCC), which he founded in 1974 (now known as the Canadian Venture Capital and Private Equity Association (CVCA)).

During this critical period, the ACVCC began to gain traction, successfully influencing government policies to better accommodate the needs of venture capitalists regarding tax treatment. This era also saw the expansion of its membership to include significant financial institutions such as Mouvement Desjardin and RoyNat.
By the end of 1976, the ACVCC had grown to include 16 associate members, demonstrating the expanding influence of the association within Canada’s economic landscape.

The ACVCC placed significant emphasis on educational initiatives, organizing its first annual conference and several seminars designed to enhance industry knowledge and foster networking among professionals.
The annual conference of 1979 was a milestone event, attracting over 190 attendees, which highlighted the growing prominence and recognition of the venture capital industry in Canada.

Throughout the 1980s, the ACVCC significantly expanded its influence across Canada, marked notably by the launch of the ‘Enterprise’ newsletter. This period also saw the colloquial adoption of the name Canadian Venture Capital Association (CVCA) among stakeholders, although the official name change to CVCA would not be formalized until November 1995. This informal adoption reflected the organization’s growing recognition and authority within the venture capital community during a decade of substantial public engagement and expansion. During this era, the ACVCC also solidified its role in public engagement by hosting regular annual conferences that became essential gatherings for industry stakeholders.
In 1981, The ACVCC played a pivotal role in discussions leading to the Investment Canada Act, which was established to promote foreign investment and protect Canadian interests.
In 1985, The ACVCC was instrumental in influencing the establishment of the Labour Sponsored Investment Fund (LSIF) program, which significantly increased available capital within the Canadian venture capital market.

The 1990s were a transformative period for the ACVCC, which was officially renamed the Canadian Venture Capital Association (CVCA). This decade saw enhanced advocacy efforts and a focus on professionalizing the organization to serve its members more effectively.
The Scientific Research and Experimental Development (SR&ED) Tax Incentive Program was introduced in 1992, which the CVCA helped to shape, boosting innovation by providing tax incentives for research and development activities in Canada.
By the mid-1990s, CVCA’s membership had significantly increased, with 100 active members by 1995, showcasing the association’s growing role as a pivotal industry body. In 1996, the board voted to change its legal name including the abbreviation “Canadian Venture Capital Association (CVCA),” was suggested.
The CVCA began representing private equity alongside venture capital in its operations in 1996. This was a strategic move, spearheaded by then CVCA Chair, Brad Ashley, to acknowledge and integrate the broader scope of investment practices within the industry, recognizing that both venture capital and private equity play critical roles in the financial ecosystem.

The new millennium brought with it global economic challenges, prompting the CVCA to advocate for and support policies that fostered industry recovery and growth. This period was marked by strategic responses to market conditions, including hosting international summits and expanding the organization’s professional capacity.
In 2001, post the dot-com bubble burst, the CVCA coordinated with government bodies to establish recovery strategies that supported the technology sectors and startups affected by the market downturn.
CVCA’s Public Policy Committee was launched in 2002, which is still active today as CVCA’s Government Relations Committee, became a key advisor to the federal government on economic strategies related to private equity and venture capital.
In late 2000s CVCA began its focus on the economic impact of venture capital. This period marked the start of studies into how venture capital contributes to the economy, which is significant given the global financial crisis that emerged in 2008. The association aimed to understand and demonstrate the crucial role of venture capital in economic resilience and recovery, particularly during times of financial uncertainty. This effort was part of the broader strategic response to the economic conditions of that time.

During the 2010s, the CVCA made significant strides in professionalizing itself and its operations, embracing diversity, and enhancing its presence. The introduction of the Venture Capital Action Plan (VCAP in 2013, to be succeeded by Venture Capital Catalyst Initiative (VCCI) in 2017) was crucial in increasing investments in diverse sectors and supporting the growth of Canadian businesses, jobs and the overall economy.
Mike Woollatt, appointed as the first CEO of the CVCA in February 2014, was tasked with a strategic mandate to professionalize the association. His leadership focused on building a team for the organization to keep pace with the evolving private market sectors of private equity and venture capital in Canada. Woollatt’s role was crucial in aligning the day-to-day operations with the board’s vision for expanded services, enhancing the CVCA’s offerings to both members and the public.
In 2014, the CVCA launched its new in-house research database designed to collect member data for use in future studies. Under the leadership of Mike Woollatt, the association significantly ramped up its research efforts, providing essential data on the private capital market to industry stakeholders and government agencies. This commitment to research has made the research committee a cornerstone of the CVCA, offering exclusive access to critical data and insights that support the industry’s understanding of market trends, education, and public awareness initiatives.
On October 10, 2014, the organization officially broadened its name to reflect its dual focus, adopting “Canadian Venture Capital and Private Equity Association (CVCA)” as its legal title. This change underscored the association’s commitment to equally represent and support both the venture capital and private equity sectors within Canada’s financial ecosystem.
As a result of the economic studies that CVCA undertook in the late 2000s, the organization advocated for the Venture Capital Action Plan, an initiative announced by the federal government to boost Canada’s innovation ecosystem by improving access to venture capital. The Venture Capital Action Plan (VCAP) initially arrived on the scene as part of the 2012 federal budget, allocating $400M in new capital over a 7-to-10-year period, with the objective of attracting an additional $800M from the private sector.
Whitney Rockley’s tenure as chair from June 2017 to July 2018 marked a significant milestone in the CVCA’s history, as she became the first female chair in an industry traditionally dominated by males. Her leadership was pivotal in promoting diversity and inclusivity within the sector, making the industry more accessible and giving a broader voice to the organization.
In 2017, the CVCA introduced its Diversity & Inclusion Taskforce, reflecting its commitment to fostering a more inclusive industry environment.
In partnership with the Ivey Academy, the CVCA established the Canadian Private Capital Investment School (CPCIS) in 2019. This initiative was designed to enhance the skills and knowledge of early career professionals in the venture capital and private equity sectors, aligning education with the evolving needs of the industry.
Kim Furlong began her tenure as the CVCA’s CEO in January 2019, marking her as the association’s second full-time CEO and first woman in the role. Under her leadership, the CVCA drafted its first strategic plan, aligning organizational activities with a clear and purposeful direction. This strategic approach was developed to guide decision-making and reflect the organization’s values, significantly enhancing the CVCA’s operational and strategic framework.
In 2019, the CVCA initiated a comprehensive campaign to highlight the significant impact of private equity on Canadian SMEs, the retirement plans of millions of Canadians, and communities nationwide. The “Private Equity at Work” campaign included a series of case studies, an economic impact study conducted by PwC, and a targeted digital awareness campaign, all aimed at educating the public about the vital role of private equity in supporting economic growth and prosperity across Canada.

Facing the unprecedented challenges of the COVID-19 pandemic, the CVCA adapted by moving its key networking events online, ensuring continuous engagement within the industry. The introduction of comprehensive strategic plans and a focus on increasing inclusivity through new programs underscored the CVCA’s commitment to leading the industry forward.
In 2022, the CVCA launched the “Future-proofing Canada’s Economy” digital awareness campaign to underscore the vital role of venture capital in spurring innovation and creating jobs. This campaign, aimed at CVCA stakeholders and the broader Canadian audience, showcased how the venture capital sector is a crucial component of the Canadian economy, highlighting its significant contributions to economic stability and growth.
The CVCA, in collaboration with the Institute of Corporate Directors, launched the Private Capital Governance Programs in 2022. These programs, designed to enhance governance practices within the venture capital and private equity sectors, have been highly regarded on a global scale. The Global Venture Capital Congress (GVCC) has applauded the CVCA’s leadership in establishing these programs and noted that similar governance frameworks will be developed and deployed across various global jurisdictions.
The launch of the CVCA Intelligence platform in 2022 provided real-time data and analytics, enhancing decision-making capabilities within the Canadian VC and PE landscape.
In 2023, the CVCA celebrated the first ever Women of Achievement in Private Capital Awards, marking a significant milestone in promoting diversity and recognizing the contributions of women in the industry. The organization continues to innovate with initiatives under the Women’s Entrepreneurship Fund (WES) such as the Women Venture Forward program (WVF), and remains at the forefront of promoting diversity and driving the industry toward a globally competitive future.

As the CVCA celebrates its 50th anniversary in 2024, it not only reflects on its substantial history of fostering economic growth and innovation but also looks forward to shaping the future of the industry. Over the past five decades, CVCA has been pivotal in advocating for policies that support venture capital and private equity, enhancing the financial landscape that helps turn visionary startups into global leaders. As we step into the next 50 years, the CVCA remains dedicated to fostering a dynamic environment where venture capital and private equity can thrive, ensuring Canada remains at the forefront of the global economic stage.

Historical List of CVCA Presidents and Chairs of CVCA’s Board of Directors

  • Gerald Sutton Gerald Sutton 1974-1976
  • Paul Lowenstein N.A. 1976-1977
  • George Fells SB Capital Corporation Ltd. 1979-1981
  • Brian Marshall RoyMark Financial Services Ltd. 1981-1982
  • Earl Storie Vengrowth Capital Funds 1983-1984
  • Archie MacKinnon Alta-Can Telecom Inc. 1985, 1987
  • Marc C. Vaillancourt 1989-1991
  • Peter Forton ACF Equity Atlantic Inc. 1995
  • Ted Anderson Ventures West Management 1996-1997
  • John Eckert McLean Watson Capital 2000-2001, 2002
  • Brad Ashley PRIVEQ Capital Funds 2002-2003
  • Robin Louis Ventures West Management 2003-2004
  • Rick Nathan Kensington Capital Partners Limited 2005-2007
  • Gregory Smith Brookfield Financial Corp. 2008-2012
  • Peter van der Velden Lumira Capital 2012, 2014-2016
  • Dave Mullen Highland West Capital Ltd. 2013, 2016-2018
  • Whitney Rockley McRock Capital 2017-2018
  • Mark Usher CIBC Innovation Banking 2018-2019
  • Peter Dowse Ironbridge Equity Partners 2019-2022
  • Hans Knapp Yaletown Partners 2022-2024
  • Rachel Skelton Torquest 2024
  • Jeannette Wiltse Relay Ventures 2024-Present

As we celebrate our 50th anniversary, we extend our gratitude to Soul of Canada for their collaboration in bringing the CVCA’s storied history to life. Their team masterfully crafted a narrative that not only commemorates our past achievements but also inspires our future endeavors. Their dedication to making history accessible and engaging has allowed us to share our journey with a broader audience, highlighting the pivotal role of venture capital and private equity in Canada’s growth.

Learn more about Soul of Canada here.