Manitoba Government Increases Venture Capital Tax Credit
Small Business Venture Capital Tax Credit increasing to $30 million from $22 million
The Manitoba government is taking action to stimulate private investment and accelerate the growth of early‑stage and scaling companies by increasing the Small Business Venture Capital Tax Credit to $30 million from $22 million beginning April 2026, Innovation and New Technology Minister Mike Moroz announced today.
The increase will unleash new venture capital investments at a time when investment in Manitoba has risen substantially, the minister said. Investment in Manitoba increased to $127 million in 2025 from $4 million in 2024, according to the Canadian Venture Capital Private Equity Association’s recent annual report.
In addition to the tax credit increase, Manitoba will also be aligning with modern investment practices by recognizing simple agreements for future equity (SAFEs) as eligible investment instruments. SAFEs are widely used in early‑stage financing across North America, the minister noted, adding this will allow companies and investors to structure deals more flexibly while maintaining a clear path to equity growth in Manitoba.
Other updates to investment rules include:
reducing the minimum eligible investment to $5,000 from $10,000, broadening participation among angel investors and encouraging greater diversification of capital; and
expanding eligibility to include limited partnerships (LPs), the standard structure for venture capital funds.