Fondaction

Fondaction is a distinctive Quebec-based labor fund, established with the primary mission of fostering sustainable development through responsible investment. As a development fund, it mobilizes the savings of its shareholders to support job creation and economic growth, particularly within Quebec's small and medium-sized enterprises (SMEs) and the social economy. Its unique structure as a labor fund emphasizes a commitment to both financial returns and positive societal and environmental impact, distinguishing it from traditional venture capital or private equity firms.

The fund's investment strategy is deeply rooted in principles of sustainable development and social responsibility. Fondaction actively seeks out companies that demonstrate strong environmental, social, and governance (ESG) practices, aiming to build a more equitable, green, and inclusive economy. It targets a wide array of sectors, including renewable energy, sustainable agriculture, circular economy initiatives, and social enterprises. With assets under management exceeding $3.4 billion, Fondaction is a significant player in Quebec's investment landscape, channeling capital towards innovative and impactful businesses.

Fondaction offers flexible financing solutions tailored to the specific needs of the businesses it supports. Its investment types include equity, quasi-equity, and debt, allowing it to engage with companies at various stages of their development, from startups to established growth-stage SMEs. While specific first cheque sizes can vary based on the project's scope and stage, Fondaction's financing solutions typically range from $50,000 for smaller initiatives up to several million dollars for larger growth opportunities. The fund often co-invests with other financial partners, leveraging collective expertise and capital to maximize impact. To date, Fondaction has supported over 1,700 SMEs across Quebec, demonstrating its broad reach and commitment to local economic vitality.

Through its strategic investments, Fondaction not only aims to generate financial returns for its shareholders but also to drive systemic change. It plays a crucial role in building a resilient and sustainable economy in Quebec by empowering businesses that are at the forefront of social and environmental innovation, thereby contributing to a better future for the community and its members.