Conexus is proud to be a Saskatchewan business. That’s why, through Credential Asset Management Inc. at Conexus Credit Union, you can invest in venture capital funds that directly support Saskatchewan companies.

Venture capital funds are funds available to invest in small and medium sized enterprises with strong growth potentials. Typically, such enterprises are characterized by strong business plans and/or strong profitability.  

Venture capital investments can be divided into three categories:

  1. New opportunities/projects – projects that require less than $500,000.
  2. Mid-size projects – projects that require between $500,000 and $3 million.
  3. Large projects – projects costing at least $3 million and above.
The source of funding for venture capital funds is usually from individuals like you, as well as organizations and institutions. Money is invested in exchange for a percentage or share in the business and this is equivalent to the percentage the investor will receive upon the success of the business/enterprise.

Profit sharing

Investing in venture capital funds will give you the opportunity to get a share in the profits of startup companies or companies that are rapidly expanding.

Economic growth

In Saskatchewan, venture capital funds are reinvested into the province. This helps improve the province’s economy and helps build more numerous and stronger businesses.

Business ownership

Investing in venture capital funds enables you to partake in the ownership of several companies. Funds are invested by fund managers into not just one, but several viable companies. It’s the Fund Managers duty to find the opportunities that will provide the highest return on investments.

Tax rebates

When you invest in a venture capital fund, you automatically get a 32.5%* tax credit on any amount up to $5000 invested annually – so you’re actually only paying 65% of the purchase price. Other tax savings apply if you make this investment in a RRSP.
Venture Capital funds are highly speculative in nature and are generally considered to be long-term investments; Investors are typically subject to a minimum hold period of up to 8 years. There is no guarantee that the investment in the Fund will earn a specific rate of return or any return in the short or long term. Any tax credits associated with the Fund may or may not apply depending upon each investor's individual circumstances, and tax consequences may apply to early redemptions.

*Labour Sponsored Investment Funds offer up to 35% in tax credits to residents of Saskatchewan. Tax credits are available to eligible investors provided that the fund is held for at least eight years from the date of purchase.