Farm Credit Canada (FCC) has launched a $100-million venture capital fund to support proven, viable companies through unexpected business disruptions, such as the COVID-19 pandemic.
Launched in partnership with Forage Capital Inc. – a Calgary-based venture capital firm – the Agriculture and Food Business Solutions Fund is set up to provide companies with the stability and flexibility they need to rebuild their business models during challenging times. FCC is the sole investor in the fund, which will primarily offer convertible debt investments, as well as other flexible financing solutions.
Michael Hoffort, FCC president and CEO, said the need for this type of venture capital fund is especially evident in light of the COVID-19 pandemic, but the need will exist beyond the current crisis as companies can experience business disruptions for various reasons.
“This strategic investment is another way FCC is supporting growth and innovation in the only industry we serve – especially at this time,” Hoffort said. “As a commercial Crown corporation, we serve as catalyst for private investment in Canada’s agriculture and food industry and we are here for the long haul, through all business cycles.”
In addition, FCC also recently invested more than $50 million into three new venture capital funds and provided funding to an innovation and growth accelerator to support various parts of Canada’s agriculture and food industry.
Read more about the different recent investments at FCC.