The Canadian Venture Capital and Private Equity Association (CVCA) is urging Prime Minister Justin Trudeau to provide emergency funding to startups affected by the collapse of the Silicon Valley Bank.

 

The Canadian Venture Capital and Private Equity Association (CVCA) is urging Prime Minister Justin Trudeau to provide emergency funding to startups affected by the collapse of the Silicon Valley Bank.   The association says that even though the FDIC stepped in and took control of SVB, its lending activities will likely be curtailed until it manages to find a buyer. The association is asking Trudeau to restart the emergency program initially established during the early days of the COVID-19 pandemic.  Through the program, startups could raise capital via convertible debt from the Business Development Bank of Canada, an entity wholly owned by the government of Canada.  CVCA's CEO Kim Furlong warned trade minister Mary Ng in a letter that failing to support Canadian startups with emergency funding could result in job losses. Furlong added that nearly 10% of Canadian venture-backed startups had deposits in SVB.