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 to raise investment under the current tax budget year. VCCs requesting to raise further investment are encouraged to submit the application online via the electronic Tax Credit Application (eTCA) system.  Alternately, completed Additional Equity Application (PDF, 197 KB), forms may be submitted manually to their Portfolio Manager or to the Venture Capital Tax Credit Program at InvestmentCapital@gov.bc.ca.

VCCs can only raise tax credit supported investment up to the authorized amount, between the dates stated in their Equity Authorization approval letter. The VCC's equity authorization ends on its expiry date.

Investors looking to make an investment into an VCC, should request a copy of the VCC's pre-approved authorization to raise tax credit supported investment to ensure the VCC has a pre-authorization in place to raise tax credit supported investment. 

VCCs must immediately 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, 197 KB), and are encouraged to complete the application online via the electronic Tax Credit Application (eTCA) system.

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