News Summary

Investissement Québec (IQ), a provincial investment agency, reported a significant financial setback with a 4.9% loss on its direct venture capital and indirect fund investments for the last fiscal year, reflecting broader market volatility and underperforming funds. This resulted in an overall return of $13 million, falling short of the $194 million forecast by Finance Minister Éric Girard. IQ attributed its poor performance to an uncertain economic environment, global instability, and a market downturn exacerbated by reciprocal tariff impositions. The agency’s report also highlighted challenges faced by Canadian venture capital funds, with negative one-year and three-year initial rates of return. Despite its losses, IQ’s five-year average returns remain above the government’s borrowing costs. Significant losses were recorded in IQ’s direct VC investments, with a $65 million loss reported. Indirect investments saw a small return, improving from the previous year’s losses. IQ’s portfolio includes major investments like the e-commerce company Lightspeed, which experienced a significant stock price drop. The agency’s role as a limited partner in 40 investment funds, including Inovia Capital and Panache Ventures, involved $1.2 billion in investments, with $130 million allocated to new and existing funds over the past year.