Venture Ontario was established by the Venture Ontario Act, 2008 (the “Act”) and performs the following activities:

1. Receive, hold, administer and otherwise deals with the interest of the Government of Ontario in the limited partnership known as the Ontario Venture Capital Fund LP;
2. Acquire, manage and otherwise deal with the other investments or classes of investments that are prescribed by the regulations;
3. Carry out the other objects that are prescribed by the regulations; and
4. Receive, hold, invest, sell or otherwise deal with property, whether real or personal, in connection with the objects described in clause (a), (b), or (c).

The Act provides that the Minister of Economic Development, Job Creation and Trade (the “Minister”) may issue policies or directives in writing to Venture Ontario on matters relating to the exercise of its powers or duties, and the Venture Ontario Board of Directors (the “Board”) shall ensure that such policies and directives are implemented in a timely manner.

Ontario Regulation 278/09 made under the Act (the “Regulation”) prescribes additional duties with respect to investments, which authorizes Venture Ontario to make:

1. Investments in venture capital funds that invest in,
   
   1. for-profit businesses, if the venture capital fund’s investments include investments in private businesses, or
   2. ii. other venture capital funds that invest in for-profit businesses if the other venture capital fund’s investment includes investments in private businesses.
2. Investments in for-profit businesses that are,
   
   1. private businesses, or
   2. public businesses, if the Corporation,
      1. invested in the business when it was a private business, or
      2. has an investment in a venture capital fund described in paragraph 1 that made a direct or indirect investment in the business when it was a private business.
3. Investments in businesses that the Corporation considers to be emerging technology businesses, which portfolio shall be known in English as the Ontario Emerging Technologies Fund and in French as Fonds ontarien de développement des technologies émergentes.
   Under the Regulation, Venture Ontario can also perform other activities to help further develop the Ontario venture capital ecosystem as follows:
   1. Develop or participate in conferences or other events regarding venture capital matters;
   2. Collect, analyze or distribute information regarding venture capital matters;
   3. Provide advice to the Government of Ontario on venture capital matters; and
   4. Undertake other activities that are similar or related to the objects described in the bullets above.

The Act, together with Venture Ontario’s corporate by-laws and the Memorandum of Understanding between the Minister and Chair of the Board, describe in general terms the manner in which Venture Ontario is to be operated and managed.

Venture Ontario is required to provide its annual report to the Minister within 120 days after fiscal year end. The annual report is tabled in the Legislature. The financial statements are consolidated with the Public Accounts of Ontario.