Many Canadian founders look for capital that doesn’t add debt. Public and regional investment corporations help by making equity investments in promising businesses, especially where private venture capital is hard to find. These organizations are government-backed, focused on their regions, and support long-term economic growth—not just quick profits.
Across Canada, provincial and territorial governments run investment corporations that take ownership stakes in businesses. Two well-known examples are the Innovation and Business Investment Corporation of Newfoundland and Labrador (IBIC-NL) and the Nunavut Development Corporation (NDC).
Public and regional investment corporations are government-owned groups that invest directly in businesses through equity or similar tools. Unlike grants or loans, you do not make fixed repayments. Investors earn returns if your business succeeds.
Key features include:
This approach is common in places where private equity is limited, such as Atlantic Canada and the North.
The Innovation and Business Investment Corporation of Newfoundland and Labrador (IBIC-NL) is the investment arm of the provincial government. It provides equity investments and business support to innovative companies based in Newfoundland and Labrador.
IBIC-NL looks for:
IBIC-NL provides:
IBIC-NL does not list fixed minimum or maximum investments. Each deal is reviewed based on risk, growth, and expected economic impact.
The Nunavut Development Corporation (NDC) makes equity investments and forms joint ventures to grow Nunavut’s economy, with a strong focus on smaller communities.
Priority sectors include:
Key features of NDC investment:
NDC often takes an active role in how the business is run, especially with subsidiaries or joint ventures.
Public investors look at your business differently than grant programs do. Before you approach them, make sure you have:
Unlike grants, equity investors care a lot about your business value, how decisions are made, and how risks are shared.
GrantHub’s eligibility matcher can help you quickly check which public investment programs fit your province and sector before you start applying.
Equity funding means sharing ownership. If you’re not comfortable giving up some control or reporting to investors, this may not be the right choice.
Groups like IBIC-NL and NDC have strict rules about where they invest. If your business isn’t local or doesn’t have a strong local impact, your chances drop.
Public investors expect solid numbers. If your projections are too optimistic or lack clear assumptions, your application may be rejected.
Board seats, voting rights, and shareholder agreements matter. Not preparing for these shows you’re not ready for investment.
Q: Is equity investment from public corporations repayable?
No fixed repayments are required. You repay investors through dividends, share buybacks, or by selling shares when your business grows.
Q: Do these organizations take control of my company?
Usually not. Most investments are minority stakes, but NDC may take majority ownership depending on the deal.
Q: Are equity investments better than grants?
They have different uses. Grants are for specific projects; equity is for long-term growth and scaling.
Q: Can startups apply for public equity investment?
Yes, if they show strong growth potential. You still need a solid business model and capable leadership.
Q: How long does the investment process take?
It can take several months. Equity deals require due diligence, setting business value, and legal work—longer than most grants.
GrantHub tracks hundreds of active grant and investment programs across Canada—including equity-based programs—so you can see which ones match your business before applying.
Equity investment from public and regional investment corporations can help your business grow if you’re ready for shared ownership and long-term responsibility. Start by finding out which organizations operate in your province and what sectors they focus on. Then, compare your business profile with current public investment programs to target your efforts where the match is best.
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