February 26, 2026
Manitoba Government Increases Venture Capital Tax Credit to $30 Million
– – –New Changes for Investors Begins April 2026: Moroz
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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, Innovation and New Technology Minister Mike Moroz announced today.
“This change modernizes one of the province’s most important economic development tools and positions Manitoba to compete more effectively for capital in a rapidly evolving investment landscape,” said Moroz. “With increased economic growth and development in Manitoba, this important tax credit change will increase investment to meet market demand.”
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.
“These tax credit updates best align the interests of local investors and entrepreneurs, unlocking tens of millions of dollars to be invested here at home. This sets the stage for Manitoba startups to build and succeed locally, without having to relocate to a more capital-rich market,” said Iain Crozier, founder, Trillick Ventures. “This Manitoba government has been a strong advocate for creating a business-friendly environment in our province and these updates showcase exactly that.”
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.
The eligibility expansion to include LPs strengthens Manitoba’s ability to attract professional investors and mobilize larger pools of capital, the minister noted.
These updates ensure the Small Business Venture Capital Tax Credit remains competitive with similar programs in other jurisdictions and sends a clear signal that Manitoba is open for business and committed to supporting companies that drive innovation and job creation, the minister said.
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